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Q.An indifference curve cannot be horizontal as this implies that consumer is indifferent between (a) less of one commodity and same amount of another (b) more of one commodity and same amount of another f) greater amount of both the commodities (d) both (a) and (b)?
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Q.An indifference curve cannot be horizontal as this implies that cons...
Indifference Curve and Horizontal Line


Indifference curve represents the various combinations of two goods that give equal satisfaction to the consumer. A horizontal indifference curve means that the consumer is indifferent between two combinations of goods. Let's see why an indifference curve cannot be horizontal.


Less of One Commodity and Same Amount of Another


If the indifference curve is horizontal, it means that the consumer is indifferent between consuming less of one commodity and the same amount of another commodity. This is not possible because if the consumer would consume less of one commodity, it would mean that the satisfaction derived from that commodity is less than the satisfaction derived from the other commodity. Hence, the consumer cannot be indifferent between the two.


More of One Commodity and Same Amount of Another


If the indifference curve is horizontal, it also means that the consumer is indifferent between consuming more of one commodity and the same amount of another commodity. This is not possible either because if the consumer would consume more of one commodity, it would mean that the satisfaction derived from that commodity is more than the satisfaction derived from the other commodity. Hence, the consumer cannot be indifferent between the two.


Greater Amount of Both the Commodities


If the indifference curve is horizontal, it also means that the consumer is indifferent between consuming a greater amount of both the commodities. This is not possible because the consumer always wants to maximize his satisfaction, and if he could get more of both the commodities, it would mean that he would be better off. Hence, the consumer cannot be indifferent between the two.


Conclusion


In conclusion, an indifference curve cannot be horizontal as it would mean that the consumer is indifferent between consuming less of one commodity and the same amount of another, more of one commodity and the same amount of another, and a greater amount of both the commodities. All of these situations are not possible as they violate the basic principles of consumer behavior and satisfaction.
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Q.An indifference curve cannot be horizontal as this implies that consumer is indifferent between (a) less of one commodity and same amount of another (b) more of one commodity and same amount of another f) greater amount of both the commodities (d) both (a) and (b)?
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Q.An indifference curve cannot be horizontal as this implies that consumer is indifferent between (a) less of one commodity and same amount of another (b) more of one commodity and same amount of another f) greater amount of both the commodities (d) both (a) and (b)? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Q.An indifference curve cannot be horizontal as this implies that consumer is indifferent between (a) less of one commodity and same amount of another (b) more of one commodity and same amount of another f) greater amount of both the commodities (d) both (a) and (b)? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Q.An indifference curve cannot be horizontal as this implies that consumer is indifferent between (a) less of one commodity and same amount of another (b) more of one commodity and same amount of another f) greater amount of both the commodities (d) both (a) and (b)?.
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