Multiple choice

Which of the following statements is false?

  1. Indifference curve is always convex to the origin.

  2. Two or more indifference curves can never intersect each other.

  3. Indifference curve will not touch the X-axis or Y-axis.

  4. Indifference curve slopes downward to the left.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Indifference curve will slope downward to the right. This property implies that when the amount of one good in combination is increased, the amount of the other good is reduced. This is essential, if the level of satisfaction is to remain the same on an indifference curve.

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