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ntersection of two indifference curves representing different levels of satisfaction is a logical contradiction. It would mean that indifference curves representing different levels of satisfaction are showing the same level of satisfaction at the point of intersection or contact. We can prove this property of indifference curves through contradiction. Suppose, two indifference curves IC1 and 1C2 meet (Fig (a)), intersect (Fig. (b)) or touch (Fig. (c)) each other at point 'A' in Fig. Point 'C' is taken just above point 'B', such that it contains same amount of commodity 'X' and more amount of commodity' Y'. Consider points 'B' and 'A' on IC1. Consumer is indifferent between these points, as both lie on the same indifference curve IC. Further, points 'A' and 'C lie on the same indifference curve IC implying same level of satisfaction to the consumer. Now, by the assumption of transitivity, points 'B' and 'C' yield same level of satisfaction to the consumer. But, point 'C' lies on a higher indifference curve having more amount of commodity' Y'. It must be preferred to point 'B' by the assumption of non-satiety. Further, intersection of two indifference curves also violates the assumption of positive marginal utilities of the two commodity. In Fig., intersection of IC1 and IC2 means additional amount of BC has zero utility. Therefore, indifference curves can never intersect or touch each other.
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What are indifference curves explain it using a graph?
o Indifference curves are curves that have a negative slope and are bowed inward. Each point on the line has the same exact util value. In other words, a person would be the same amount of "happy" at each point on the indifference curve. There are an infinite amount of indifference curves on every graph. G2
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.
Why isoquant curve cannot intersect?
By Definition isoquants, like indiffernce curves, can never cut each other. Because if they could, It would be a Logical Contradiction.
Why is the Graph of the Indifference Curve Convex to the Origin and not Concave?
an indifference curves are convex not concave bcz: when we are using the two coomodities, both are sbtitute to each other, consumer will either use one or the other, he has to select one according to his taste, so MRS is diminishing, 2. the indifference curves are convex to the ogigan, this implies that the slope of IC is decreased as we move from let to right in the graph. this axom is derved from the point that MRS s decreasing. an indifference curves are convex not concave bcz: when we are using the two coomodities, both are sbtitute to each other, consumer will either use one or the other, he has to select one according to his taste, so MRS is diminishing, 2. the indifference curves are convex to the ogigan, this implies that the slope of IC is decreased as we move from let to right in the graph. this axom is derved from the point that MRS s decreasing.
Describe the characteristics of indifference curve?
Properties/Characteristics of Indifference Curve:Definition, Explanation and Diagram:An indifference curve shows combination of goods between which a person is indifferent. The main attributes or properties or characteristics of indifference curves are as follows:(1) Indifference Curves are Negatively Sloped:The indifference curves must slope down from left to right. This means that an indifference curve is negatively sloped. It slopes downward because 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.In fig. 3.4 the two combinations of commodity cooking oil and commodity wheat is shown by the points a and b on the same indifference curve. The consumer is indifferent towards points a and b as they represent equal level of satisfaction.At point (a) on the indifference curve, the consumer is satisfied with OE units of ghee and OD units of wheat. He is equally satisfied with OF units of ghee and OK units of wheat shown by point b on the indifference curve. It is only on the negatively sloped curve that different points representing different combinations of goods X and Y give the same level of satisfaction to make the consumer indifferent.(2) Higher Indifference Curve Represents Higher Level:A higher indifference curve that lies above and to the right of another indifference curve represents a higher level of satisfaction and combination on a lower indifference curve yields a lower satisfaction.In other words, we can say that the combination of goods which lies on a higher indifference curve will be preferred by a consumer to the combination which lies on a lower indifference curve.In this diagram (3.5) there are three indifference curves, IC1, IC2 and IC3 which represents different levels of satisfaction. The indifference curve IC3 shows greater amount of satisfaction and it contains more of both goods than IC2 and IC1 (IC3 > IC2 > IC1).(3) Indifference Curve are Convex to the Origin:This is an important property of indifference curves. They are convex to the origin (bowed inward). This is equivalent to saying that as the consumer substitutes commodity X for commodity Y, the marginal rate of substitution diminishes of X for Y along an indifference curve.In this figure (3.6) as the consumer moves from A to B to C to D, the willingness to substitute good X for good Y diminishes. This means that as the amount of good X is increased by equal amounts, that of good Y diminishes by smaller amounts. The marginal rate of substitution of X for Y is the quantity of Y good that the consumer is willing to give up to gain a marginal unit of good X. The slope of IC is negative. It is convex to the origin.(4) Indifference Curve Cannot Intersect Each Other:Given the definition of indifference curve and the assumptions behind it, the indifference curves cannot intersect each other. It is because at the point of tangency, the higher curve will give as much as of the two commodities as is given by the lower indifference curve. This is absurd and impossible.In fig 3.7, two indifference curves are showing cutting each other at point B. The combinations represented by points B and F given equal satisfaction to the consumer because both lie on the same indifference curve IC2. Similarly the combinations shows by points B and E on indifference curve IC1 give equal satisfaction top the consumer.If combination F is equal to combination B in terms of satisfaction and combination E is equal to combination B in satisfaction. It follows that the combination F will be equivalent to E in terms of satisfaction. This conclusion looks quite funny because combination F on IC2 contains more of good Y (wheat) than combination which gives more satisfaction to the consumer. We, therefore, conclude that indifference curves cannot cut each other.(5) Indifference Curves do not Touch the Horizontal or Vertical Axis:One of the basic assumptions of indifference curves is that the consumer purchases combinations of different commodities. He is not supposed to purchase only one commodity. In that case indifference curve will touch one axis. This violates the basic assumption of indifference curves.In fig. 3.8, it is shown that the in difference IC touches Y axis at point C and X axis at point E. At point C, the consumer purchase only OC commodity of rice and no commodity of wheat, similarly at point E, he buys OE quantity of wheat and no amount of rice. Such indifference curves are against our basic assumption. Our basic assumption is that the consumer buys two goods in combination.
What are indifference curves explain it using a graph?
o Indifference curves are curves that have a negative slope and are bowed inward. Each point on the line has the same exact util value. In other words, a person would be the same amount of "happy" at each point on the indifference curve. There are an infinite amount of indifference curves on every graph. G2
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.
Why isoquant curve cannot intersect?
By Definition isoquants, like indiffernce curves, can never cut each other. Because if they could, It would be a Logical Contradiction.
Why does an indifference curve never meet?
No indifference curve can intersect because all points on indifference curve are ranked equally prefered and ranked either or less more prefered than every other point on the curve.rt
Why is the Graph of the Indifference Curve Convex to the Origin and not Concave?
an indifference curves are convex not concave bcz: when we are using the two coomodities, both are sbtitute to each other, consumer will either use one or the other, he has to select one according to his taste, so MRS is diminishing, 2. the indifference curves are convex to the ogigan, this implies that the slope of IC is decreased as we move from let to right in the graph. this axom is derved from the point that MRS s decreasing. an indifference curves are convex not concave bcz: when we are using the two coomodities, both are sbtitute to each other, consumer will either use one or the other, he has to select one according to his taste, so MRS is diminishing, 2. the indifference curves are convex to the ogigan, this implies that the slope of IC is decreased as we move from let to right in the graph. this axom is derved from the point that MRS s decreasing.
Describe the characteristics of indifference curve?
Properties/Characteristics of Indifference Curve:Definition, Explanation and Diagram:An indifference curve shows combination of goods between which a person is indifferent. The main attributes or properties or characteristics of indifference curves are as follows:(1) Indifference Curves are Negatively Sloped:The indifference curves must slope down from left to right. This means that an indifference curve is negatively sloped. It slopes downward because 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.In fig. 3.4 the two combinations of commodity cooking oil and commodity wheat is shown by the points a and b on the same indifference curve. The consumer is indifferent towards points a and b as they represent equal level of satisfaction.At point (a) on the indifference curve, the consumer is satisfied with OE units of ghee and OD units of wheat. He is equally satisfied with OF units of ghee and OK units of wheat shown by point b on the indifference curve. It is only on the negatively sloped curve that different points representing different combinations of goods X and Y give the same level of satisfaction to make the consumer indifferent.(2) Higher Indifference Curve Represents Higher Level:A higher indifference curve that lies above and to the right of another indifference curve represents a higher level of satisfaction and combination on a lower indifference curve yields a lower satisfaction.In other words, we can say that the combination of goods which lies on a higher indifference curve will be preferred by a consumer to the combination which lies on a lower indifference curve.In this diagram (3.5) there are three indifference curves, IC1, IC2 and IC3 which represents different levels of satisfaction. The indifference curve IC3 shows greater amount of satisfaction and it contains more of both goods than IC2 and IC1 (IC3 > IC2 > IC1).(3) Indifference Curve are Convex to the Origin:This is an important property of indifference curves. They are convex to the origin (bowed inward). This is equivalent to saying that as the consumer substitutes commodity X for commodity Y, the marginal rate of substitution diminishes of X for Y along an indifference curve.In this figure (3.6) as the consumer moves from A to B to C to D, the willingness to substitute good X for good Y diminishes. This means that as the amount of good X is increased by equal amounts, that of good Y diminishes by smaller amounts. The marginal rate of substitution of X for Y is the quantity of Y good that the consumer is willing to give up to gain a marginal unit of good X. The slope of IC is negative. It is convex to the origin.(4) Indifference Curve Cannot Intersect Each Other:Given the definition of indifference curve and the assumptions behind it, the indifference curves cannot intersect each other. It is because at the point of tangency, the higher curve will give as much as of the two commodities as is given by the lower indifference curve. This is absurd and impossible.In fig 3.7, two indifference curves are showing cutting each other at point B. The combinations represented by points B and F given equal satisfaction to the consumer because both lie on the same indifference curve IC2. Similarly the combinations shows by points B and E on indifference curve IC1 give equal satisfaction top the consumer.If combination F is equal to combination B in terms of satisfaction and combination E is equal to combination B in satisfaction. It follows that the combination F will be equivalent to E in terms of satisfaction. This conclusion looks quite funny because combination F on IC2 contains more of good Y (wheat) than combination which gives more satisfaction to the consumer. We, therefore, conclude that indifference curves cannot cut each other.(5) Indifference Curves do not Touch the Horizontal or Vertical Axis:One of the basic assumptions of indifference curves is that the consumer purchases combinations of different commodities. He is not supposed to purchase only one commodity. In that case indifference curve will touch one axis. This violates the basic assumption of indifference curves.In fig. 3.8, it is shown that the in difference IC touches Y axis at point C and X axis at point E. At point C, the consumer purchase only OC commodity of rice and no commodity of wheat, similarly at point E, he buys OE quantity of wheat and no amount of rice. Such indifference curves are against our basic assumption. Our basic assumption is that the consumer buys two goods in combination.
What is Differences between cost indifference point and break even point?
the point at which total cost lines under the two alternatives intersect each other. Cost indifference point is calculated as under: - Difference in fixed costs/ Difference in PV ratio.
What are characteristics of indifference curve?
1.it is convex to the origin 2.they can not intersect each other 3.they dnt need to be parallel to each other 4. they can't touch the axis 5.they are negativley sloped
Why two lines cannot be both parallel and perpendicular?
Since two parallel lines never intersect, they cannot be perpendicular to each other because perpendicular lines intersect and form angles of 90⁰.
Do indifference curve meet?
Indifference curves are the graphical representation of the preferences of an individual. In microeconomics there are three assumptions about preferences in order for them to make sense in terms of the graphical representation through indifference curves. One assumption is the notion of completeless. This means that there is no ambiguity between what the individual prefers. The individual prefers one over the other or the individual does not care which one he gets. Another assumption is that preferences are consistent. For example if an individual prefers good A to good B and good B over good C. Then the individual prefers good A to good C. The last assumption is that an individual will always prefer more goods than less of a good. An indifference curve depicts all the combinations of goods that provide the individual the same amount of satisfaction. If two indifference curves intersect, this violates the last assumption of individual preferences that more is preferred over less of a good. In this case the individual is indifferent to less when the individual can have more. The problem with this violating these assumptions is that they are the basis of utility or profit maximization. If a firm or individual prefers less than the tools of utility or profit maximization will not make accurate predictions.
Can paralell lines curve?
If only one curves, then eventually the curve will intersect with the other line, even if it is way down into infinity ona graph. If both lines curve at the same angles at the same rate however, staying equidistant from each other, they are still parallel and will never intersect.
Is isoquant always positively inclined?
Following are the properties of Isoquant Curves, 1. Convex to the origin. 2. Slopes downward to the right. 3. Never parallel to the x-axis or y-axis. 4. Never horizontal to the x-axis or y-axis. 5. No 2 curves intersect each other. 6. Each iso quant is a part of an oval. 7. It cannot have a positive slope. 8. It cannot be upward sloping. Anonymous
