Q:
Consider the following statements about indifference curves:
1. Indifference curves are convex to the origin.
2. Higher indifference curve represents higher level of satisfaction.
3. Two indifference curves cut each other.Which of the statements given above is/are correct?
Answer & Explanation
Answer: B) 1 and 2
Explanation: The indifference curves cannot intersect each other.
Higher indifference curve represents a higher level of satisfaction because higher IC means a bundle consisting more of both the goods or same quantity of one good n more quantity of the other good .Hence statement 2 is correct and 3 is incorrect.
Indifference curves is convex to the point of origin because of diminishing Marginal Rate of Substitution.
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and this face will lie opposite the face bearing a square. Also, one of the blank faces lies opposite another blank face and the third blank face lies opposite the face bearing an '=' sign. Clearly, all the three blank faces cannot appear adjacent to each other. So, the cube shown in fig. (2) which has all the three blank faces adjacent to each other cannot be formed. Hence, only the cubes shown in figures A, C and D can be formed.