Concepts of Indifference Curve

Concepts of Indifference Curve 

Indifference curve 

Indifference curve is the graphical representation which shows the different combination of two goods that gives the same level of utility to the consumer.

Here in the diagram x- axis is measuring Goods X and y- axis measuring Goods Y. The point A, B, C, D joined together showing different combinations to form an indifference curve. Like from the diagram we can see that combination A(8X+1Y) gives the same level of utility as B(6X+2Y) and so on.

Characteristics of Indifference Curve:

• Indifference Curve is always downward sloping or negative sloping.
• Indifference Curve are convex to origin.
• Indifference Curve never intersect each other.
• Indifference Curve is less steep when move down to right.
  

Indifference Map

Cluster of two or more Indifference Curve is known as Indifference Map.

Here in the diagram there are cluster of indifference curve (IC1, IC2, IC3, IC4) are known as Indifference Map.