Why is an indifference curve not straight?

This property follows from assumption I. Indifference curve being downward sloping means that when the amount of one good in the combination is increased, the amount of the other good is reduced. This must be so if the level of satisfaction is to remain the same on an indifference curve.

Do indifference curves have to be curved?

An indifference curve shows a combination of two goods that give a consumer equal satisfaction and utility thereby making the consumer indifferent. Typically, indifference curves are shown convex to the origin, and no two indifference curves ever intersect.

Why is indifference curve downward sloping and convex to the origin?

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 marginal rate of substitution goes down as the consumer gives up one good for another, so it is convex to the origin.

Can an indifference curve be vertical?

Therefore, an indifference curve cannot slope upward from left to right. It is not an iso-utility curve. Therefore, an indifference curve cannot be vertical either. Consequently, an indifference curve will be of negative slope, as shown in Figure 4 (D) where A and В combinations give equal satisfaction to the consumer.

Why can’t indifference curves never cross?

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. We, therefore, conclude that indifference curves cannot cut each other.

Why are indifference curve downward sloping only?

Indifference curves slope downwards. The only way an individual can increase consumption in one good without gaining utility is to consume another good and generate the same amount of utility. Therefore, the slope is downwards sloping. Indifference curves assume a convex shape.

Why are indifference curves bowed inward?

This is because people are more willing to trade away goods that they have in abundance and less willing to trade away goods of which they have little. These differences in a consumer’s marginal substitution rates cause his or her indifference curve to bow inward.

What assumption is violated when an indifference curve slopes upward?

A set of indifference curves can be upward sloping if we violate assumption number three; more is preferred to less. When a set of indifference curves is upward sloping, it means one of the goods is a “bad” in that the consumer prefers less of the good rather than more of the good.

Why are indifference curves not concave?

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. This is called a decrease in marginal utility and is the reason why indifference curves are convex.

Why are indifference curves not concave to the origin?

The curve could not be concave, as this would mean that the marginal rate of substitution increases (which is not possible as the consumer gives up one good for another). Indifference curves are convex to the origin because the marginal utility of each product consumed decreases with subsequent consumption.