Explanation The indifference curve is the graphical representation of different combinations of two commodities that provide the same level of satisfaction to the consumer. Since the level of satisfaction is same at every point, the consumer will be indifferent amongst them. The indifference curve for the pizza and Pepsi can be drawn as follows: There are mainly four properties to the indifference curves. The main properties can be described as follows: (1) The indifference curves are bowed inwards: The indifference curves are inwards bowed due to the willingness of the people to give away the goods that are in abundance with them in order to obtain those goods which are scarce and vice versa...

The indifference curves and the properties of indifference curve.

Principles of Economics (MindTap Course List)

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ISBN: 9781305585126

Author: N. Gregory Mankiw

Publisher: Cengage Learning

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Chapter 21.2, Problem 2QQ

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The indifference curves and the properties of indifference curve.

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