GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Two indifference curves can intersect each other
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Convex to the origin
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Downward sloping
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None of the above
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Detailed explanation-1: -Explanation: The indifference curves cannot cross one other. The reason for this is that at the point of tangency, the higher curve will provide the same amount of the two commodities as the lower indifference curve.
Detailed explanation-2: -The four properties of indifference curves are: (1) indifference curves can never cross, (2) the farther out an indifference curve lies, the higher the utility it indicates, (3) indifference curves always slope downwards, and (4) indifference curves are convex.
Detailed explanation-3: -As two indifference curves cannot represent the same level of satisfaction, they cannot intersect each other. It means only one indifference curve will pass through a given point on an indifference map.
Detailed explanation-4: -Indifference curve is convex to the origin because of diminishing rate of marginal substitution.