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Explain the characteristic of Indifference curve. 

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(i) Points along with the same indifference curve represents the same level of satisfaction. All the points along the same indifference curve represents all those combination of two commodities which provides the same level of satisfaction to the consumer.

(ii) Different Indifference curve represents different level of satisfaction. If many indifference curves are shown in single diagram then every indifference curve represent different level of satisfaction.

Curves nearer to origin represents lower level of satisfaction and curves which are away from origin represent higher level of satisfaction. 

(iii) Higher indifference curve represents higher level of satisfaction. Higher indifference curve shows higher level of satisfaction in comparison to lower indifference curve, because along the higher indifference curve we are using more units of 

one commodity with the same units of another commodity or more units of both the commodities. Therefore the satisfaction level of such combinations will be more . 

(iv) Indifference curves are negative sloping. Indifference curves are always slopes downwards to the right or negative sloping, because if consumer increases units of one commodity, then to maintain the same level of satisfaction consumer has to decrease the units of another commodity. 

So as the units of X is increased then units of Y has to be decreased and vice-versa. Due to this negative relationship indifference curves are downward sloping .

(v) Indifference curves are convex towards the origin. Indifference curves are convex towards the origin because marginal rate of substitution continously decreases. It is because as the stock of one commodity increases its marginal importance for the consumer will continously

decreases, therefore he is ready to sacrifice lesser and lesser units of one commodity for the every extra unit of another commodity to maintain the same level of satisfaction. 

(vi) Indifference curve need not be parallel to each other. Indifference curve may be or may not be parallel to each other, it depends on marginal rate of substitution. If marginal rate of substitution is same for two indifference curves then the 

slope of the curves would be same and the curves would be parallel to each other. But if marginal rate of substitution is different then curves would be non–parallel to each other.

(vii) Indifference curves never intersect each other. Two or more indifference curves never intersects each other, because every indifference curve shows different combinations of two goods which represents different level of satisfaction.

If two indifference curves intersect each other then it will discard the basic assumption, that higher indifference curve shows higher level of satisfaction

(viii) Indifference curves never touches any of the axis. Indifference curve do not touches any of the axis, because if indifference curve touches any of the axis then it would mean that the quantity of one commodity becomes zero.

If indifference curve touches X axis then it means that units of Y commodity becomes zero and if indifference curve touches Y axis then it means units of X commodity becomes zero. As ordinal approach considers that consumer is consuming two or more commodities at a time.

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