Which of the following statements correctly describes the nature of indifference curve ?
(A) Indifference curve slopes downwards from left to right
(B) A lower indifference curve represents lower cost to consumer
(C) A higher indifference curve gives higher level of satisfaction
(D) Two indifference curves never intersect each other
(E) Indifference curves are always parallel to each other
Choose the correct answer from the options given below :
Which of the following statements correctly describes the nature of indifference curve ?
(A) Indifference curve slopes downwards from left to right
(B) A lower indifference curve represents lower cost to consumer
(C) A higher indifference curve gives higher level of satisfaction
(D) Two indifference curves never intersect each other
(E) Indifference curves are always parallel to each other
Choose the correct answer from the options given below :
Solution
Properties of indifference curves: they slope downward from left to right (A) -- correct. Higher IC gives higher satisfaction (C) -- correct. Two ICs never intersect (D) -- correct. (B) is incorrect because lower IC represents lower satisfaction, not lower cost. (E) is incorrect because ICs need not be parallel. Answer: (A), (C), (D) Only.
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