Indifference Curve Slopes Downward
As we saw in our last discussion that the Indifference curves slope downward to the right. But what if they sloped upward ? And why don’t they ? Well ! If they sloped upward, they would reject the assumption that more is recommended than less. Because at some points that had more of both goods would be indifferent to a basket with less of both goods.
To describe preferences for all combinations of goods/services, we have a set of indifference curves –And that Set of Indifference Curves is called an indifference map.
Each indifference curve in the map shows the market baskets among which the person is indifferent.
Indifference Curve Shapes
Now the Indifference maps give more information about shapes of indifference curves
Indifference curves cannot cross. Because it crosses or goes against the assumption that more is better.
Why? What if we assume they can cross?
Next topic is Marginal Rate of Substitution=MRS