Why do indifference curves slope downward

Explain the following : a why is an indifference curve convex to the origin? An indifferences curve slopes downwards from left to right because. Explain the following a Why is an IC i downward sloping ii convex. Why are indifference curves always convex to the origin? Why is an Indifference curve generally convex to the origin. Why does an indifference curves always convex to the origin?

Explain why an Indifference curve has a negative slope i. IC slope down - wards to the right. Define budget line and indifference cuve. Also explain why the two are downward sloping form left to Disclaimer The questions posted on the site are solely user generated, Doubtnut has no ownership or control over the nature and content of those questions. The indifference curves slopes downward from left to right. As the consumer increases the consumption of X commodity, he has to give up certain units of Y commodity in order to maintain the same level of satisfaction Shriyanshu Keshari Dec 12, Due to marginal rate of substitution.

Hemanth Hem Jan 29, In order to represent increase in the quantity of another commodity an indifference cure always slope downwards form left to right.

Upvote 1. Muskan Garg Jan 29, Due to MRS Tani Sharma Aug 20, IC slopes downwards because of monotonic preferences for a particular commodity. Manik Sodhi Aug 20, The indifferece curve represents different combinations of two goods. There is a inverse relation between the consumption of two goods if we want to increase the consumption of one goods then the consumption of the other good must be decrease therefore because of this negative relation between two goods the indifference curve slopes downward.

Aditya Chauhan Jan 31, Due to decrease in MRS. Rashmi Kumari replied Sep 08, Aditya Chauhan replied Sep 08, Raghav Garg Dec 12, Due to change in Marginal rate of substitution.

Tanya Mishra Dec 13, Due to diminishing rate of marginal substitution. Adishi Aki Dec 12, IC curve slopes downward because in order to consume more good of good X we have to decrease the unit of good Y. Umesh Kumar May 27, Due to diminishing marginal rate of substitution. Yashasvi Sharma Sep 08, Because if consumer decides to have more unit of one good, he will have to reduce the number of units of another good, so that total satisfaction remain the same.

Several possibilities are identified in the diagram. Figure 2. Indifference Curves and a Budget Constraint. Lilly would have more utility at a point like F on the higher indifference curve Uh, but the budget line does not touch the higher indifference curve Uh at any point, so she cannot afford this choice.

A choice like G is affordable to Lilly, but it lies on indifference curve Ul and thus provides less utility than choice B, which is on indifference curve Um.

The choice of F with five books and doughnuts is highly desirable, since it is on the highest indifference curve Uh of those shown in the diagram. Choices B and G are both on the opportunity set. However, choice G of six books and 48 doughnuts is on lower indifference curve Ul than choice B of three books and 84 doughnuts, which is on the indifference curve Um.

If Lilly were to start at choice G, and then thought about whether the marginal utility she was deriving from doughnuts and books, she would decide that some additional doughnuts and fewer books would make her happier—which would cause her to move toward her preferred choice B. The highest achievable indifference curve touches the budget constraint at a single point of tangency. Since an infinite number of indifference curves exist, even if only a few of them are drawn on any given diagram, there will always exist one indifference curve that touches the budget line at a single point of tangency.

All higher indifference curves, like Uh, will be completely above the budget line and, although the choices on that indifference curve would provide higher utility, they are not affordable given the budget set. All lower indifference curves, like Ul, will cross the budget line in two separate places. When one indifference curve crosses the budget line in two places, however, there will be another, higher, attainable indifference curve sitting above it that touches the budget line at only one point of tangency.

Practice until you feel comfortable doing the questions. Improve this page Learn More. Skip to main content. Module 6: Utility. Search for:. Indifference Curve Analysis Learning Objectives Describe the purpose, use, and shape of indifference curves Explain how one indifference curve differs from another Explain how to find the consumer equilibrium using indifference curves and a budget constraint.

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