Properties of indifference curves

Properties of indifference curves: The 3 properties of indifference curves are as shown below:

A) Slopes downward from left to right: To consume more of onegood the consumer should give up little quantity of another good and hence total utility remains similar.

B) Convex towards origin: MRS declines constantly due to the operation of law of diminishing marginal utility.

C) Higher indifference curves symbolizes higher utility: Higher indifference curve symbolize big bundle of goods. That means more utility since of monotoric preference.

View Complete Question

Related Questions in Microeconomics

Q : Price elasticity of supply of commodity

Determine the price elasticity of supply of a commodity whose straight line supply curve passes via the origin forming an angle of 45 degree/75 degree? Answer: Unit

Q : Economies of Scope exploitation I have

I have a problem in economics on Economies of Scope exploitation. Please help me in the following question. A retailer providing multiple lines of clothes in a mall is attempting to exploit the economies of: (i) Scope. (ii) Structure. (iii) Scale. (iv) Information. (v

Q : Higher prices of good-Substitution The

The demand for Toyota Corollas will rise in response to: (i) Higher prices for Honda Civics. (ii) The decrease in price of steel. (iii) Honda offering enormous discounts to probable buyers. (iv) Technological progress for designing a car. (v) Higher safety ratings for

Q : Negative slope of market-Law of demand

I have a problem in economics on Negative slope of market-Law of demand. Please help me in the following question. The negative slope of the market demand curves for normal goods areleast persuaded by: (i) Diminishing marginal utility. (ii) Inco

Q : Borrower and lenders in financial

Financial institutions like banks perform as intermediaries. They lend their savings of depositors to final borrowers, charging more interest to borrowers than they pay to depositors, who are the eventual providers of loans. How does it decrease the <

Q : Needs of families by poverty line

The official “poverty line” computed by the federal government is the income level needed to meet the perceived fundamental needs of families along with differing characteristics as size, location, etc. Therefore, it is based on: (1) a rel

Q : Unite to form cartels and share

Oligopolies which unite to form cartels and share monopoly profits give an illustration of: (i) collusive behavior. (ii) territorial imperatives. (iii) mergers and acquisitions. (iv) non-collusive strategy. (v) corporate raiding.

Q : Perfectly price discrimination

Babble-On holds world-extensive patents for software which translates any of 314 spoken languages within text, along with automatic audio and text translations within any of the other three-hundred-thirteen languages. This figure illustrates that Babble-On as: (1) is

Q : Long run supply Illustrate and explain

Illustrate and explain using diagrams, the difference between long run supply in a constant cost individual firm and industry and an increasing cost firm and industry.

Q : Drive rivals out of business A firm may

A firm may temporarily lower prices as well as earn negative profits in trying to: (w) drive rivals out of business. (x) find rivals to lower prices. (y) maximize current profit. (z) A rational firm would not do this.

Discover Q & A

Leading Solution Library

Avail More Than 1445860 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1936975
Asked

3,689

Active Tutors

1445860

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment