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Define an indifference curve. - Economics

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प्रश्न

Define an indifference curve.

What is Indifference Curve?

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उत्तर

Definition: An indifference curve shows all the possible combinations of two goods that provide a consumer with the same level of satisfaction or utility.

Characteristics:

  • Downward sloping (negative slope)
  • Convex to the origin (reflecting diminishing marginal rate of substitution)
  • Do not intersect each other

Example: If a consumer is equally satisfied with 3 apples and 2 bananas or 2 apples and 3 bananas, these points will lie on the same indifference curve.

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पाठ 5: Theory of Consumer's Behaviour : Indifference Curve Analysis - TEST QUESTIONS [पृष्ठ ५.१७]
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