Friday, May 29, 2009

Micro-economics, Properties of Indifference Curve(1)Downward sloping to the right:(b) Indifference curve cannot be vertical straight line:

(b) Indifference curve cannot be vertical straight line:
Instead of sloping downward to the right if an indifference curve is a vertical straight line, the consumer will remain on the same indifference curve and at the same level of satisfaction even though he has more units of apples and same amount of mangoes. The addition of apples without losing any of mangoes must take him onto the higher indifference curve rather than keeping him on old indifference curve hence indifference curve cannot be a vertical straight line.

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