Chapter EMD, Problem 2MCQ

To determine

To state: The option that is true for the indifference curve for ordinary goods.

Answer to Problem 2MCQ

The correct option is e, i.e. I, II, and III.

Explanation of Solution

An indifference curve is defined as a chart depicting various combinations of two commodities or goods that leave the consumer equally satisfied or equally well off.

The four features of indifference curves are as follows:

(1) IC curves can never intersect,

(2) The farther an indifference curve lies, the higher the utility it shows,

(3) They always slope downwards, and

(4) They are convex.

So, the correct option is e, i.e. I, II, and III. That is I. they cannot intersect, II. They have a negative slope, III. They are convex. So, considering the features of the IC curve all the options are true.

Economics Concept Introduction

Introduction:

An indifference curve is defined as a chart depicting various combinations of two commodities or goods that leave the consumer equally satisfied or equally well off.