dolve it plz
indifference curve: it is an diagrammatic presentation of an indifference set of a consumer. It is a locus of all such point which shows the different combination of two commodities (apples and oranges ) offering the same level of satisfaction to the consumer .
properties of indifference curve are :--
1)
1. Indifference curves are downward sloping to the right: Downward slope of the indifference curve to the right implies that a consumer cannot simultaneously have more of both the goods. An increase in the quantity of one good is associated with the decrease in the quantity of the other good. This is in accordance with the assumption of monotonic preferences.
2. Slope of IC: The Slope of an IC is given by the Marginal Rate of Substitution (MRS). Marginal rate of substitution refers to the rate at which a consumer is willing to substitute one good for each additional unit of the other good.
At point A:
i.e. MRS shows the rate at which the consumer is willing to sacrifice good Y for an additional unit of good X.
3. Shape of Indifference Curve(IC is convex to origin): As we move down along the Indifference curve to the right, the slope of IC (MRS) decreases. This is because as the consumer consumes more and more of one good, the marginal utility of the good falls. On the other hand, the marginal utility of the good which is sacrificed rises. In other words, the consumer is willing to sacrifice less and less for each additional unit of the other good consumed. Thus, as we move down the IC, MRS diminishes. This suggests the convex shape of indifference curve.
In the above figure, IC is the Indifference Curve.
At point A,
At point B,
MRS at B < MRS at A, so MRS has fallen.
4)IC don't intersect each other:
This is because IC analysis consider the consumption of two goods. If IC touches Y axis it would mean that the consumption of good x is zero likewise if it touches X axis , it would mean that consumption of good Y is zero
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