Some important properties are as under&
1):--------There are infinite number of IC in a commodity space
In a commodity space there a lot of points which represents the pairs of two goods like X and Y Accordingly, if joined them we will get an ifinite Number of IC.
2):--------
as in the diagram IC4 represent the (X2, Y2) and (X1, Y1) which is
lower than IC4.
G<E------------------------------ AS SHOWN.
3):--------indifference curve has negative slope.or they fall left
to right
The negative slope of IC shows that as consumer wants to increase
the units of x he will foregothe units of Y, that is why an IC falls
negatively.
In faviour of this logic here we explained with the help of the
following diagram&
i).ifan IC is vertical s.line&
C= (2,3) B (2,2) A(2,1)
ii).if an IC is horizontal s.line&
C= (3,2),b=(2,2) A=(1,1)
iii).if an IC is upward slope&
C=(3,3), b=(2,2) A= (1,1)
This mean in all cases C>B>A and do not yield the same
satisfaction.this is against the theory of indifference curve and according
these diagram consumer could not remain indifferent .so IC cannot assume the of
these kinds.
4):--------an IC is convex to the origin
It is becoz of the reason that as a consumer has more and more
units of.x, he losses less and less of y this mean that goods x and y are not
perfect substitutes of each other.to prove it .we take two hypothetical IC,s
i)this IC shows MRS between all the points remain-the same. I,e
Dy1/Dx1= Dy3/Dx1----.
t
it mean both thing Are perfect substitute.it is agains’t the IC
theory.
And
ii) An indifference curve never concave to the origin then MRS
Dy2/Dx2> Dy1/Dx1----. Contradict with IC theory.
5):--------indifference curve do not intersect. here two IC,s intersect each other at point K. IC2 represents a higher level of
satisfaction as compared with IC1 and at the same point two level of
satisfaction cannot occur and vice versa.
6):--------I.C does not touch the vertical and horizontal Axis.
I.C. shows the combination of two commodities (X &Y). consumer
will purchase both commodities not any one of them.
In this diagram, if I.C. touches horizontal axis (x-axis) at point
B, it shows that consumer purchases only OB of “X” and (Zero) of “Y” Similarly “A”
point shows that consumer buys OA units of commodity Y and nothing of commodity
X. both points violate the assumptions, we assume that consumer want to purchase
both commodities.
CONCLUSION
From the above analysis, we conclude that I.C. can only be
negatively sloped, convex to origin. It can never intersect each other as well
as can not touch any of the axis.