DOWNWARD SLOPE AND CONVEX SHAPE OF INDIFFRENCE CURVE-IMPORTANT PROPERTIES OF INDIFFERENCE CURVE
Learning Contents: · Why an indifference curve slopes downward or negatively sloped and convex to the point of origin? Downward Slope of Indifference curve: As discussed earlier, an indifference curve refers to all those combinations of two goods that give a consumer an equal level of satisfaction or utility. Since all the combinations offer the same amount of satisfaction, the consumer prefers them equally. Hence, it is named as indifference curve. Each point on the indifference curve shows some combinations of two different goods a consumer can choose out from and give an equal amount of satisfaction. The slope of the indifference curve is downward from left to right; in other words, negatively sloped. This is because a consumer can get more of a type of good only at the sacrifice of another. If a consumer increases the consumption of a good (Say-X), he or she must sacrifice some units of another good