What does it mean if two indifference curves intersect?

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. Similarly the combinations shows by points B and E on indifference curve IC1 give equal satisfaction top the consumer.

Can two indifference curves intersect each other?

Indifference curves can intersect each other.

Why two indifference curve do not cross explain explicitly by elaborating using some of its assumptions?

Indifference curve cannot intersect each other Each indifference curve is a representation of particular level of satisfaction. The level of satisfaction of consumer for any given combination of two commodities is same for a consumer throughout the curve. Thus, indifference curves cannot intersect each other.

Why does indifference curve slope downward?

(i) Indifference Curve Slopes Downwards : because in order to consume more units of X good the consumer must give up some quantity of Y good, so that consumer remains on the same level of satisfaction at each of an indifference curve.

Why are indifference curves negatively sloped?

Indifference curves are negatively sloped because for a constant level of utility, if the consumer wants to increase the consumption of one good, she has to reduce the consumption of the other good.

Can indifference curve cross itself?

No, an indifference curve can’t cross itself. All the points on an indifference curve represent the same level of utility by consuming two goods….

Can you give any reason why indifference curves are convex to the origin or bowed inward?

Indifference curves are convex to the origin because as the consumer begins to increase his or her use of one good over another, the curve represents the marginal rate of substitution. The reason that the marginal rate of substitution decreases is due to the principle of diminishing marginal utility.

Why are indifference curves bowed outward instead of straight lines?

In general, indifference curves bow in towards the origin, rather than being straight lines or outward-bulging curves. The reason for this is that most people do not like extremes: they would rather have a some shirts and some hats than many hats and no shirts.

Why does an indifference curve slope downward and why is it bowed towards the origin an indifference curves slopes downward because _______?

5. Answer b. Normal indifference curves slope downward because individuals must be compensated by getting more units of good X when they give up units of good Y.

Why is an indifference curve negatively sloped?

The indifference curves must slope down from left to right. This means that an indifference curve is negatively sloped. It slopes downward because as the consumer increases the consumption of X commodity, he has to give up certain units of Y commodity in order to maintain the same level of satisfaction.

Why is an indifference curve convex to the origin?

Indifference curves are convex to the origin because the increase in utility from an increase of a single unit of any product does not remain the same. For example, if you may be very pleased to have two pizzas instead of one.

Can two indifference curves cross?

Two different indifference curves cannot cross each other because that would violate transitivity, but a curve may well cross itself if the individual has a point of satiation for one of the goods.

What is the slope of an indifference curve?

The slope of the indifference curve is known as the MRS, or the marginal rate of substitution. Stated simply, the MRS is the rate at which the consumer is willing to give up one good for another.