Which of the following are true about indifference curves?

(A) All the points lying on an indifference curve provide the consumer with different levels of satisfaction.

(B) Indifference curves are convex to the origin due to law of Diminishing Marginal Rate of Substitution.

(C) Higher indifference curve gives greater level of utility.

(D) In the case of perfect substitutes, indifference curves are straight lines.

Choose the correct answer from the options given below:

Option 1 -> Statement (A) is incorrect because all points on the same indifference curve provide the SAME level of satisfaction, not different levels.

Option 2 -> This includes only (B) and (C), missing statement (D) which is also true about perfect substitutes.

Option 3 -> This includes statement (A) which is false, as points on an indifference curve represent equal satisfaction.

Option 4 -> This correctly identifies statements (B), (C), and (D) as true, excluding the false statement (A).

Hence, Option 4: (B), (C) and (D) only -> Statement (B) is correct: indifference curves are convex to the origin due to diminishing marginal rate of substitution (MRS decreases as we move down the curve). Statement (C) is correct: higher indifference curves represent bundles with greater total utility. Statement (D) is correct: for perfect substitutes, the MRS is constant, resulting in straight-line indifference curves. Statement (A) is incorrect because the fundamental property of an indifference curve is that all points on it yield the same level of satisfaction to the consumer. -> correct