Why can an indifference curve be straight?

Yes, the indifference curve can be a straight line if both the goods are perfect substitutes that is both goods provide the same level of satisfaction…

What is the indifference curve for perfect substitute goods?

If two goods are perfect substitutes, their prices (per comparable unit) must be the same if both are to be used: the elasticity of substitution between them is infinite, and any price difference will lead to all consumers choosing the cheaper. An indifference curve between them is a straight line.

Why are the indifference curves for perfect complements right angles?

Since complementary goods can only be consumed together, then indifference curves must be right angles.

Why are indifference curves concave?

Indifference curves can be straight lines if a slope is constant, resulting in an indifference curve represented by a downward-sloping straight line. If the marginal rate of substitution is increasing, the indifference curve will be concave to the origin.

Why are indifference curves convex?

The convex shape of the indifference curve can be attributed to the diminishing marginal rate of substitution. The diminishing marginal rate of substitution explains that in order to consume more quantity of a good then the consumer has to sacrifice a greater proportion of the other good.

Why is a straight line a curve?

The points determining a curved line change direction from one point to the next point. A straight line is a succession of multiple points aligned in the same direction. A curved line always has a non-zero curvature, which can be positive or negative. A straight line always has a zero curvature.

What makes a line straight?

By definition, a straight line is the set of all points between and extending beyond two points. The two properties of straight lines in Euclidean geometry are that they have only one dimension, length, and they extend in two directions forever.

Why is indifference curve upward sloping?

When a set of indifference curves is upward sloping, it means one of the goods is a “bad” so that the consumer prefers less of that good rather than more. The positive slope means that the consumer will accept more of the bad only if he also receives more of the other good in return.

Why indifference curve is not upward sloping?

The negative slope of the indifference curve reflects the assumption of the monotonicity of consumer’s preferences, which generates monotonically increasing utility functions, and the assumption of non-satiation (marginal utility for all goods is always positive); an upward sloping indifference curve would imply that a …

Why are indifference curves convex and downward sloping?

Indifference curves slope downward because, if utility is to remain the same at all points along the curve, a reduction in the quantity of the good on the vertical axis must be counterbalanced by an increase in the quantity of the good on the horizontal axis (or vice versa).

What is the indifference curve of perfect substitutes?

In case of perfect substitutes, the indifference curves are parallel straight lines because the consumer equally prefers the two goods and is willing to exchange one good for the other at a constant rate.

Can indifference curves be straight line?

Indifference curves cannot be straight line. A straight line indifference curve means the goods are perfect substitutes so that the consumer is indifferent between them. DONT FORGET TO UPVOTE IF YOU REALLY LIKED THE ANSWER!!

What is the indifference curve in economics?

It is a curve that represents all the combinations of goods that give the same satisfaction to the consumer. Since all the combinations give the same amount of satisfaction, the consumer prefers them equally. Hence the name Indifference Curve. Here is an example to understand the indifference curve better.

Why does Mrs remain constant in an indifference curve?

If they could substitute one another perfectly, then MRS would remain constant. Here are the properties of an indifference curve: This slope signifies that when the quantity of one commodity in combination is increased, the amount of the other commodity reduces.