-1What Are Indifference Curves? Explain Their Properties?

An indifference curve is a contour line that slopes downward from left to right, showing
equal levels of satisfaction on each of its points, with the given amount of income spent
on different combinations. As the indifference curve is always convex to the origin it
shows that the Marginal Rate of Substitutions (MRS) gradually falls, to enable the
consumer to move from one combination to another of two commodities or more.
Properties of indifference curves : ( Characteristics )
- an indifference curve is always convex to the origin and
- indifference curves move parallel to each other and never intersect with each other.

1) An indifference curve is not parallel to the horizontal axis because it will result in the
MRS equaling to zero which is impossible.
2) Neither it is parallel to the vertical axis, for the same reason which will result in
MRS=0. This curve tells us the opposite.( e.g. When we purchase 15 units of good x we
also purchase 10 units of good y. When we take 20 units of good y where as good x
should decrease because it is resulting in 10 units of good y for free, which is not
possible.
3) An indifference curve can not be a straight line demand curve.Because it would lead in
MRS being constant which is not logical because it should fall .
4) It can neither be concave to the origin. Because we are substituting goods, thus it
should diminish.
5) Indifference curves do not intersect with each other.* indifference curves are parallel
to each other, when consumer income increases then the curves shifts to higher or lower,
this is so because MRS is same but if MRS is not same then indifference curve may not
remain parallel.
6) An indifference curve can not be "L" shaped".This is so because L shape would only
form if the case is of complimentary goods, whereas indifference curve is of substitute
goods.
7) An indifference curve cannot touch either axis: It is obvious that indifference curve
cannot touch either of the 2 axis because in case of touching one axis, a consumer will
purchase only one commodity at a time; whereas he is required to make a combination of
two commodities to maximize the level of satisfaction with the given level of income.
8) Higher indifference curve yields higher level of satisfaction and vice versa.