Characteristics of Indifference Curve

1. Indifference Curve is downward sloping:

As we move from point A to point B on the curve we are consuming more of good X
but less of good Y. In order to consume more of a good, we would need to reduce the
consumption of the other good in order to achieve the same satisfaction. This creates a
negative relation between two goods hence the downward sloping curve.

2. It is concave or bowed inward

If we are consuming at point A (2 of X and 15 of Y) and we move to point B (4 of X

and 10 of Y) we will be decreasing the consumption of Y by 5 in order to increase the
consumption of X by 2 so that our total utility remains the same. The consumer is
willing to give up rather more of good Y when consumption of X is small. The rate at
which the consumer is willing to substitute one good for another in this way is known
as marginal rate of substitution.
3. Higher Indifference curve show more satisfaction

At point B we are consuming 100 of good A and 100 of good B, if we move to point
A we will be consuming more of good A and B increasing our satisfaction thus higher
indifference curve show higher satisfaction.

4. Indifference Curves Cannot Cross

Assume that two indifference curves I1 and I2 have intersected. Since these curves are
not higher than the other, they will have same satisfaction. At point B we are
consuming 130 of good B and 80 of good A. At point C, we are consuming 140 of
good B and 90 of good A hence we are consuming more of both goods but still
getting same satisfaction since both curves have same satisfaction. This is not logical
as we are consuming more but getting same satisfaction.