#### Properties Indifference curve

Properties of an Indifference curve:

1. Indifference curves slope downs to the right.

2. Indifference curves are convex to the source.

3. No two indifference curves can yet cut each other.

Each indifference curves slope downs from left to right. The downward slope of indifference curve should be attributed to the fact that the consumer in replacing good X by good Y raises the amount of Y and decreases the amount of X. When the indifference curves were horizontal line running parallel to X axis then the combination that it symbolizes has similar amount of Y however more and more of X. In that situation the satisfaction from the combination will not be equivalent. For similar reason, it can be said that indifference curve will not be vertical.

All indifference curves are convex to the source. This is since of the operation of a principle termed as ‘Diminishing Marginal Rate of Substitution’. The indifference curves depend on this principle. When they are concave to the source, then it will mean that MRS is rising. Indifference curve can’t be straight line except whenever the goods are perfect substitutes.

Figure: Indifference curves slopes downwards

Marginal rate of replacement among X and Y refers to the amount of commodity Y to be provided in exchange for one unit of X commodity. The MRS goes on retreating as consumer goes on replacing X for Y.

The third supposition is that no two indifference curves can ever cut each other. However in figure below we discover that two indifference curves do cut each other.

Figure: No two indifference curves intersect each other

Point A that is on indifference curve 2 symbolizes a higher level of satisfaction to the consumer than at point B that is on indifference curve 1. However point C lies on both curves. That means, two levels of satisfaction A and B that are unequal have become equivalent. That can’t be accepted. Therefore indifference curves can never cut each other.

These are the three suppositions about the shape of indifference curve.

Latest technology based Economics Online Tutoring Assistance

Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Theory of Consumer Behavior help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Theory of Consumer Behavior, project ideas and tutorials. We provide email based Theory of Consumer Behavior help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Theory of Consumer Behavior. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics Homework help and assignment help services. They use their experience, as they have solved thousands of Economics assignments, which may help you to solve your complex issues of Theory of Consumer Behavior. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.