Is indifference curve positively sloped?
The indifference curve is positively sloped when one good is bad and one is good for the consumer. Bad goods refers to those goods which are preferred…
Can indifference curves slope up?
A set of indifference curves can be upward sloping if we violate assumption number three; more is preferred to less. When a set of indifference curves is upward sloping, it means one of the goods is a “bad” so that the consumer prefers less of that good rather than more.
Why indifference curve has negative slope?
Answer : An indifference curve always slopes downward from left to right, i.e. it has a negative slope. This is so because if a consumer wants to have more units of one commodity; he will have to reduce the number of units of the other commodity, due to his limited income.
Why is indifference curve downward sloping and convex to the origin?
ii Indifference Curve is convex to the origin : Because it is assumed that Marginal Rate of Substitution falls continuously as the consumer moves downwards along the curve. It is due to the Law of Diminishing Marginal Utility.
Why do indifference curves have a negative slope quizlet?
Why does the an indifference curve have a negative slope? marginal rate of substitution- the rate at which you are willing to reduce the consumption of one good to get one more unit of another good and still remain indifferent. can an indifference curve intersect another indifference curve?
Why do indifference curves slope upward?
When a set of indifference curves is upward sloping, it means one of the goods is a “bad” in that the consumer prefers less of the good rather than more of the good. The positive slope means that the consumer will accept more of the bad good only if she also receives more of the other good in return.
Why do indifference curves Cannot cross or slope upward?
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.
Why the indifference curve is convex?
Indifference curves are convex to the origin because the marginal utility of each product consumed decreases with subsequent consumption. This convex relationship is based upon an idea dubbed the marginal rate of substitution, which is represented by the formula (Z = change in X / change in Y).
Can an indifference curve be concave?
Indifference curves can be straight lines if a slope is constant, resulting in an indifference curve represented by a downward-sloping straight line. If the marginal rate of substitution is increasing, the indifference curve will be concave to the origin.
Why indifference curve is convex?
Why are indifference curves concave?
If the marginal rate of substitution is increasing, the indifference curve will be concave to the origin. This is typically not common since it means a consumer would consume more of X for the increased consumption of Y (and vice versa).
What does the slope of indifference curve indicate?
The slope of indifference curve indicates Marginal rate of substitution. The marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to give up for another good, as long as the new good is equally satisfying.
Why indifference curves are always negatively sloped?
The indifference curve is drawn as a downward slope from left to right; in other words, it is negatively sloped. This is because as the consumer increases the consumption of a particular commodity
Can an indifference curve have a positive slope?
No, because there are bundles on the indifference curve that have strictly more of both goods than other bundles on the (alleged) indifference curve. If both pepperoni and anchovies are bads, will the indifference curve have a positive or a negative slope?
Why indifference curve is downward sloping?
The indifference curve is drawn as a downward slope from left to right; in other words, it is negatively sloped. This is because as the consumer increases the consumption of a particular commodity (X), he or she must sacrifice units of the other commodity (Y) to maintain the same level of satisfaction.