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Yes, usually, because both goods are desirable, so you would be equally happy (for example) with 5 puppies and 2 cats as you would be 2 puppies and 5 cats. If you connect these points, you will create a negatively sloped line.
There are instances where the slope is positive because one of the options involved is undesirable. For example, if I have puppies and garbage. Now, I want more puppies, but less garbage. So, I may be equally happy with 2 puppies and 2 piles of garbage as I would be with 5 puppies and 5 piles of garbage. This is because the benefit of having more puppies is offset by the negative of having more garbage. This creates a positively sloped line. There are also instances where there is 0 slope or infinite slope if the quantity of a good is irrelevant to your enjoyment of it, like air. You would be happier with more puppies, but you would not be happier with more air. You would also not be less happy with more air. The amount of air is irrelevant to your happiness. This would be a zero slope line.
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How do you find the slope of an Indifference curve?
You find the tangent to the curve at the point of interest and then find the slope of the tangent.
Indifference curve analysis is not much in use because it only tells us that demand curve has a negative slope except when they don't .?
indifference curve analysis is not much in use because it only tells us that demand curve has a negative slope except when they don't ....
What are characteristics of an indifference curve?
indifferent curves are convex to their origin, they do not intersect, and have a negative slope
What happens to the marginal rate of substitution as you move along a convex indifference curve?
The MRS measures how much of a good you are willing to give up in exchange for one more unit of the other good, keeping utility constant. The MRS diminishes along a convex indifference curve in that as you move down along the indifference curve, you are willing to give up less and less of the one good in exchange for the other. The MRS is also the slope of the indifference curve, which increases (becomes less negative) as you move down along the indifference curve. The MRS is constant along a linear indifference curve, since in this case the slope does not change. The consumer is always willing to trade the same number of units of one good in exchange for the other.
What is Consumer equilibrium under ordinal utility approach?
Consumer equilibrium is the point where consumer attains highest level of satisfaction. There are two conditions of equilibrium under ordinal approach 1- Necessary Condition: 'Budget line is tangent to the highest possible indifference curve.' 2- Sufficient Condition: 'At equilibrium, Indifference curve must be convex to the origin' Thus, at equilibrium , Px/Py (absolute slope of Budget line) = dy/dx (absolute slope of Indifference Curve) (In simple words, it'd determination of consumer's equilibrium with the help of Indifference curve.)
Slope of indifference curve?
indifference curves slopes downward to the right
How do you find the slope of an Indifference curve?
You find the tangent to the curve at the point of interest and then find the slope of the tangent.
What does the slope of the indifference curve reveal?
marginal rate of substitution
Indifference curve analysis is not much in use because it only tells us that demand curve has a negative slope except when they don't .?
indifference curve analysis is not much in use because it only tells us that demand curve has a negative slope except when they don't ....
What are characteristics of an indifference curve?
indifferent curves are convex to their origin, they do not intersect, and have a negative slope
What happens to the marginal rate of substitution as you move along a convex indifference curve?
The MRS measures how much of a good you are willing to give up in exchange for one more unit of the other good, keeping utility constant. The MRS diminishes along a convex indifference curve in that as you move down along the indifference curve, you are willing to give up less and less of the one good in exchange for the other. The MRS is also the slope of the indifference curve, which increases (becomes less negative) as you move down along the indifference curve. The MRS is constant along a linear indifference curve, since in this case the slope does not change. The consumer is always willing to trade the same number of units of one good in exchange for the other.
What is the different between indifference map and indiffirence curve?
Indifference curve is a curve that shows consumption bundles that give the consumer the same level of satisfaction. Indifference map, on the other hand Indifference curve is a graph of two or more indifference curves.
What is Consumer equilibrium under ordinal utility approach?
Consumer equilibrium is the point where consumer attains highest level of satisfaction. There are two conditions of equilibrium under ordinal approach 1- Necessary Condition: 'Budget line is tangent to the highest possible indifference curve.' 2- Sufficient Condition: 'At equilibrium, Indifference curve must be convex to the origin' Thus, at equilibrium , Px/Py (absolute slope of Budget line) = dy/dx (absolute slope of Indifference Curve) (In simple words, it'd determination of consumer's equilibrium with the help of Indifference curve.)
Features of indifference curve?
two indifference curve never cut each other..
What is the slope of a curve?
Slope of a Curve A number which is used to indicate the steepness of a curve at a particular point.The slope of a curve at a point is defined to be the slope of the tangent line. Thus the slope of a curve at a point is found using the derivative
What is shape of indifference curve?
what will be the shape of indifference curve if one of the two goods is a free commodity
Can a single indifference curve cross itself?
a single indifference curve cannot cross itself.
