Do indifference curves have to be curved?

An indifference curve shows a combination of two goods that give a consumer equal satisfaction and utility thereby making the consumer indifferent. Typically, indifference curves are shown convex to the origin, and no two indifference curves ever intersect.

Can an indifference curve be flat?

If the indifference curve (or slope) is flat, then the MRS is low. This means the consumer is willing to give up very little good y for an additional unit of good x.

Are indifference curves parallel?

ADVERTISEMENTS: (8) Indifference curves are not necessarily parallel to each other. Though they are falling, negatively inclined to the right, yet the rate of fall will not be the same for all indifference curves. This is so because indifference curves are assumed to be negatively sloping and convex to the origin.

What is the lines of indifference curve?

An indifference curve is a line showing all the combinations of two goods which give a consumer equal utility. In other words, the consumer would be indifferent to these different combinations.

Are indifference curves always downward sloping?

Indifference curves slope downwards. The only way an individual can increase consumption in one good without gaining utility is to consume another good and generate the same amount of utility. Therefore, the slope is downwards sloping. Indifference curves assume a convex shape.

Can an indifference curve be vertical?

Therefore, an indifference curve cannot slope upward from left to right. It is not an iso-utility curve. Therefore, an indifference curve cannot be vertical either. Consequently, an indifference curve will be of negative slope, as shown in Figure 4 (D) where A and В combinations give equal satisfaction to the consumer.

Why do indifference curves flatten?

All points along a single indifference curve provide the same level of utility. Higher indifference curves represent higher levels of utility. Indifference curves are steeper on the far left and flatter on the far right, because of diminishing marginal utility.

Why are indifference curves flat?

Indifference curves like Um are steeper on the left and flatter on the right. The reason behind this shape involves diminishing marginal utility—the notion that as a person consumes more of a good, the marginal utility from each additional unit becomes lower.

Can indifference curve touch either axis?

An indifference curve cannot touch either axis. If it touches X-axis, as I2 in Figure 6 at U, the consumer will be having OM quantity of good X and none of Y. An indifference curve is convex to the origin. The convexity rule implies that as the consumer substitutes X for Y, the marginal rate of substitution diminishes.

When we draw an indifference curve?

An indifference curve is drawn on a budget constraint diagram that shows the tradeoffs between two goods. All points along a single indifference curve provide the same level of utility. Higher indifference curves represent higher levels of utility.

Why are indifference curves downward sloping and convex?

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).

Can an indifference curve be upward sloping?

A set of indifference curves can be upward sloping if we violate assumption number three; more is preferred to less. 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.

Why are indindifference curves always straight lines?

Indifference curves describing the trade off between consumption of such goods (perfect substitutes) are therefore straight lines as MRS would be constant along the curve. The hack this influencer used to break the private jet industry. She was able to accomplish all of this with just $250 to start!

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.

What is the difference between complementary and substitutes indifference curves?

When the commodities under consideration are complements to each other or substitutes, indifference curves do not take normal shapes. For complementary commodities, indifference curves look like the English letter ‘L’, whereas for substitutes indifference curves are negatively sloped straight lines.

Can a curve ever be a straight line?

*It is not necessary to refer to a line as a straight line because the definition of a line automatically means a line is straight. If the “line” is not straight then it is not actually a line (at least not b I think I know where you are going with this. However a curve will never be a line*.