An indifference curve represents combinations of two goods that provide the same level of satisfaction to a consumer. Indifference curves have several key properties: 1) They slope downward, meaning more of one good requires less of the other to maintain the same satisfaction level. 2) They cannot cross, as a higher curve always provides at least as much satisfaction as a lower curve. 3) They are convex to the origin, never being a straight line or concave shape, due to the rate of substitution between goods. 4) Higher curves represent greater satisfaction levels than lower curves.

1. Presented By:
Hafiz Muhammad Amir
BB14017
Case study By:
Shahzad Ahmad
BB14043

2. What is Indifference Curves ?
An Indifference Curve can be defined as the locus
of various combinations of quantities of two goods
each of which offers the same level of satisfaction(
Utility, U) to the consumer to the extent that the
consumer turns indifferent in between any two of
them
Reference:
Microeconomics by S.S.S
Chauhan
Publisher: PHI learning
Page # 140

3. Properties of Indifference
Curves:-
 An Indifference Curve Slopes Down.
 Indifference Curves Can Not Cross Each Other.
 Indifference Curves Can not Be Thick.
 Indifference Curves are convex to the Origin.
 Higher Indifference Curve Represents Higher
Level of Satisfaction.
 Indifference Curves never intersect the axes.

4. Indifference Curves Are
Down sloping
An indifference Curve slopes downward
more of one product means less of the other
total utility is to remain unchanged.
Reference:
Economics written by Campbell R. McConnell
19th eddition
Page # 238

5. Indifference Curves can not
cross each other
 At the point of tangency, the higher curve will give
as much as of the two commodities as is given by
the lower indifference curve.
Reference:
Microeconomics written by: D.N Dwivedi
Publisher: Pearson

6. Indifference Curves Can not
Be Thick
It is difficult to draw
It would not be rational.

7. Indifference Curves are convex
to the Origin.
Can never be straight line.
Can never be concave to the origin.
because of the rate of substitution.
Reference:
Principles of Economics written by : H.L. AHUJA
Publisher: S.Chand
Page # 204

8. Higher Indifference Curve
Represents Higher Level of
Satisfaction
Each indifference curve has different level of
satisfaction.
Higher indifference curve has higher the level of
satisfaction.
Lower indifference curve has lower level of
satisfaction.
Reference:
Economics written by : G.S.Maddala, Ellenn Miller
Publisher: TATA McGRAW HILL
page # 102

9. Indifference Curves never
intersect the axes
One of the basic assumptions of indifference
curves is that the consumer purchases
combinations of different commodities. He is not
supposed to purchase only one commodity. In
that case indifference curve will touch one axis.
This violates the basic assumption of
indifference curves.
Reference:
Microeconomics by S.S.S Chauhan
Publisher: PHI learning
Page # 146

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