Which one is not the characteristics of indifference curve?
Theory Of Consumer Behaviour. Which of the following is not a characteristic of an indifference curve: Indifference Curve is convex to the origin. Indifference Curve do not intersect each other.
What are the characteristics of indifference curve?
The four properties of indifference curves are: (1) indifference curves can never cross, (2) the farther out an indifference curve lies, the higher the utility it indicates, (3) indifference curves always slope downwards, and (4) indifference curves are convex.
Are indifference curves always downward sloping?
Indifference curves slope downward because, if utility is to remain the same at all points along the curve, a reduction in the quantity of the good on the vertical axis must be counterbalanced by an increase in the quantity of the good on the horizontal axis (or vice versa).
Which of the is a characteristic of utility?
Four characteristics of utility are form, time, place, and possession.
What is the reason for the convex shape of an indifference curve?
The indifference curves are convex to the origin because of the diminishing marginal rate of substitution.
What is indifference curve State three properties of indifference curves?
(a) Indifference curves slope downwards or negative slope: The indifference curves slope downwards, left to right, because an increase in the amount of Good X along the indifference curve is associated with a decrease in the amount of Good Y, as the preferences are monotonic.
Why are such curves a downward sloping?
The IS curve describes equilibrium in the market for goods and services in terms of r and Y. The IS curve is downward sloping because as the interest rate falls, investment increases, thus increasing output. The LM curve describes equilibrium in the market for money.
Which of the following is the reason of downward sloping indifference curve?
The indifference curve is drawn as a downward slope from left to right; in other words, it is negatively sloped. This is because as the consumer increases the consumption of a particular commodity (X), he or she must sacrifice units of the other commodity (Y) to maintain the same level of satisfaction.
Why do indifference curves Cannot cross or slope upward?
The indifference curves cannot intersect each other. It is because at the point of tangency, the higher curve will give as much as of the two commodities as is given by the lower indifference curve.