Identify the features of indifference curve ?
(A) An indifference curve reflects same utility level with different combinations.
(B) Indifference curve are downward sloping from right to left.
(C) Higher indifference curve gives greater level of utility.
(D) Two indifference curve never intersect each other.
Choose the correct answer from the options given below:
Identify the features of indifference curve ?
(A) An indifference curve reflects same utility level with different combinations.
(B) Indifference curve are downward sloping from right to left.
(C) Higher indifference curve gives greater level of utility.
(D) Two indifference curve never intersect each other.
Choose the correct answer from the options given below:
Solution
An indifference curve shows different combinations giving the same utility (A), a higher curve represents greater utility (C), and two indifference curves never intersect (D). The standard property is that the curve slopes downward from left to right; statement (B) reverses the direction, so it is not accepted.
Note: Statement (B) says 'downward sloping from right to left' whereas the standard property is downward from left to right. We have treated (B) as not correct as worded.
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