1.

What is Indifference Curve ? State three properties of indifference curves.

Answer»

Indifference Curve is locus of points representing different combinations of the only two goods the consumer consumes with each combination having same utility level.

Properties of Indifference Curve are -

(i) Indifference Curve slopes downward from left to right.

(ii) Indifference Curve is convex to the origin

(iii) Higher Indifference Curve represents higher utility



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