Define an indifference curve. Explain why an indifference curve is downward sloping from left to right.

Define an indifference curve. Explain why an indifference curve is dow

1.	Define an indifference curve. Explain why an indifference curve is downward sloping from left to right.
Answer» <html><body><p></p>Solution :An <a href="https://interviewquestions.tuteehub.com/tag/indifference-1041534" style="font-weight:bold;" target="_blank" title="Click to know more about INDIFFERENCE">INDIFFERENCE</a> curve is a graph showing combination of two goods that <a href="https://interviewquestions.tuteehub.com/tag/give-468520" style="font-weight:bold;" target="_blank" title="Click to know more about GIVE">GIVE</a> the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility.The indifference curves must slope down from left to right. This means that an indifference curve is negatively sloped. It <a href="https://interviewquestions.tuteehub.com/tag/slopes-1212080" style="font-weight:bold;" target="_blank" title="Click to know more about SLOPES">SLOPES</a> downward because as the consumer increases the consumption of <a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a> commodity, he has to give up certain units of Y commodity in order to maintain the same level of satisfaction.</body></html>