Answers

Rajesh
Aug 2, 2020

Three properties of indifference curves are as follow.

  1. Slopes downward from left to right : To consume more of one good the consumer must give up some quantity of the other good so that total utility remains the same.
  2. Convex towards the origin : MRS declines continuously due to the operation of the law of diminishing marginal utility.
  3. Higher indifference curves represents higher utility : Higher indifference curve represent large bundle of goods. Which means more utility because of monotonicpreference.