Which indifference curve gives the highest level of satisfaction?

Budget Line Since a higher indifference curve represents a higher level of satisfaction, a consumer will try to reach the highest possible IC to maximize his satisfaction.

Why does lower indifference curve give lower satisfaction?

Indifference curves like Um are steeper on the left and flatter on the right. The reason behind this shape involves diminishing marginal utility—the notion that as a person consumes more of a good, the marginal utility from each additional unit becomes lower.

What are the features of indifference curve?

Characteristics of Indifference Curves

• Indifference curves slop downward to the right.
• Every indifference curve to the right represents a higher level of satisfaction.
• Indifference curves cannot intersect each other.
• Indifference curve will not touch the axis.
• Indifference curves are convex to the origin.

  Who gave indifference curve analysis?

  Developed by the Irish-born British economist Francis Y. Edgeworth, it is widely used as an analytical tool in the study of consumer behaviour, particularly as related to consumer demand.

  What are two features of indifference curve?

  An indifference curve is a graphical representation of a combined products that gives similar kind of satisfaction to a consumer thereby making them indifferent. Every point on the indifference curve shows that an individual or a consumer is indifferent between the two products as it gives him the same kind of utility.

  What are the properties of indifference curve?

  The four properties of indifference curves are: (1) indifference curves can never cross, (2) the farther out an indifference curve lies, the higher the utility it indicates, (3) indifference curves always slope downwards, and (4) indifference curves are convex.

  What is the properties of indifference curve?

  What are the main features of indifference curve?

  What is importance of indifference curve?

  The indifference curve technique is definitely superior to the utility analysis because it discusses the income effect when the consumer’s income changes; the price effect when the price of a particular good changes and its dual effect in the form of the income and substitution effects.