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INTRODUCTION OF INDIFFERENCE CURVE. IC analysis is a modern method to analyse consumer’s behaviour. It is based on ordinal utility. There are two
There are four important properties of indifference curves that describe most of them: (1) They are downward sloping, (2) higher indifference curves are preferred to lower ones, (3) they cannot intersect, and (4) indifference curves are convex (i.e. bowed inward).
Definition: An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference
Some of the properties are: 1. They Slope Negatively or Slope Downwards from the Left to the Right 2. They are Convex to the Origin of Axes 3. Every Indifference Curve to the right represents Higher Level of Satisfaction than that of the Proceeding One and Others.
(An indifference curve is an implicit function that has the amounts of goods Economists usually assume that utility functions have several properties or
Consumers’ tastes can be related to utility concepts or indifference curves. These are. 57 obtain each additional unit of X. It is this property that makes MRSXY diminish and indif- cep.lse.ac.uk/events/lectures/layard/RL040303.pdf.Theory of Consumer. Behaviour – Indifference. Curve. General Econom1cs Properties of Indifference Curve. • An Indifference Curve has a Negative Slope i.e..
Properties of indifference curves. These are negatively sloped, higher indifference curve represent higher levels of satisfaction.

The consumer prefers. A to all combinations in the yellow box, while all those in the pink box are preferred to A. Indifference Curves: An Example (pp. 65 – 79).
The first property of an indifference curve is that it is a negative sloped curve. It has a negative slope means that it slopes downwards from the left to the right in the diagram and therefore, we have to prove that an indifference curve can only slope downwards.

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