What Are The Properties Of Indifference Curve?


9 Answers

Shah Zahoor Profile
Shah Zahoor answered
Here are the properties of indifference curve.
1) An indifference curve is always negatively sloping downward from left to right.
2) An indifference curve is always convex to the origin.
3) An indifference curve is which is lying at the extreme of the right is the higher indifference curve of an indifference curves map and it represents the greatest level of satisfaction. Similarly the indifference curve which is lying at the left (bottom) side of the other curves on the indifference curves map is the lowest level of satisfaction.
4) Two or more than two indifference curve never intersect/cross each other.
5) Another additional property of an indifference curve is that an indifference curve never touches "X" axis or "Y" axis.
Map. A set of indifference curves which shows different combinations is called an indifference map.
Note1: The Indifference curve and an Isoquant are almost similar to each other according to shape and their properties, but remember that an indifference curve shows the combinations of two commodities (goods & services, Combined called commodity) points of two commodities which give the same level of satisfaction to the consumer. The ration of each commodity in a combination maybe different.
Note2: An isoquant curve is a curve which show the combinations of two different inputs which produce the same level of output. The entrepreneur may change the ratio of inputs in a combination to substitute one input factor for another, to reduce the amount of one factor and increase the amount other factor which will also give the same level of satisfaction.
Map: A set of isoquant which shows different combinations of inputs that give the same level of output is called an isoquant map.
By: Shah Zahoor -your- Rehman
Anonymous Profile
Anonymous answered
An indifference curve is negayively sloped.
It is convex not concave
it cannot intersect
Anonymous Profile
Anonymous answered
1.  It is always a falling curve.
2.  Two indifference curve never cut each other.
3.  It is subject to apply (diminishing marginal rate of substitution)
4. It is never a zig-zag curve.
5. It shows the behavior of the consumer.
Lily James Profile
Lily James answered
Indifference curve is defined in economics as a graph which shows combination of two things. It is usually consumer goods that yield equal satisfaction to an individual.

It was developed by an Irish economist Francis Edgeworth and is used as an analytical tool in the study of consumer behavior.

We can equivalently refer to each point on the curve as providing the same level of utility. The main use of the curve is in the representation of the consumer demand patterns over a given time period.
zahra malik Profile
zahra malik answered
An indifference curve is a contour line that slopes downward from left to right, showing equal levels of satisfaction on each of its points, with the given amount of income spent on different combinations. As the indifference curve is always convex to the origin it shows that the Marginal Rate of Substitutions (MRS) gradually falls, to enable the consumer to move from one combination to another of two commodities or more. Properties of indifference curves : ( Characteristics )- an indifference curve is always convex to the origin and- indifference curves move parallel to each other and never intersect with each other.1) An indifference curve is not parallel to the horizontal axis because it will result in the MRS equaling to zero which is impossible.2) Neither it is parallel to the vertical axis, for the same reason which will result in MRS=0. This curve tells us the opposite.( e.g. When we purchase 15 units of good x we also purchase 10 units of good y. When we take 20 units of good y where as good x should decrease because it is resulting in 10 units of good y for free, which is not possible.3) An indifference curve can not be a straight line demand curve.Because it would lead in MRS being constant which is not logical because it should fall .4) It can neither be concave to the origin. Because we are substituting goods, thus it should diminish. 5) Indifference curves do not intersect with each other.* indifference curves are parallel to each other, when consumer income increases then the curves shifts to higher or lower, this is so because MRS is same but if MRS is not same then indifference curve may not remain parallel.6) An indifference curve can not be "L" shaped".This is so because L shape would only form if the case is of complimentary goods, whereas indifference curve is of substitute goods.7) An indifference curve cannot touch either axis: It is obvious that indifference curve cannot touch either of the 2 axis because in case of touching one axis, a consumer will purchase only one commodity at a time; whereas he is required to make a combination of two commodities to maximize the level of satisfaction with the given level of income.8) Higher indifference curve yields higher level of satisfaction and vice versa.
d ds Profile
d ds answered
Indifference curve plots the bundles of different goods on the same graph and helps in determining the point where the consumer will be indifferent in choosing between the two bundles. Its properties are:

  • A graph can lie in any of the four quadrants but in the case of an indifference curve, it is always constructed in the positive, positive quadrant. It can not be there in any other quadrant.

  • It is always downward sloping, showing a negative relationship. As the quantity consumed of one good’s bundle increases that of the other decreases.

  • The shape of the curve is always convex

  • The indifference curves never intersect.

  • The consumers have different preferences for goods; they might prefer one bundle over the other one.
Anonymous Profile
Anonymous answered
Simple and easy definition is ,as it is that choot which is black and sometimes red.

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