Commerce Exam > Commerce Questions > Which of the following is not true?a)Indiffer...
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Which of the following is not true?
- a)Indifference curves cannot intersect each other
- b)Two indifference curve can be tangent to each other
- c)Indifference curves are convex to the origin
- d)Indifference curves slopes downward to the right
Correct answer is option 'B'. Can you explain this answer?
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Which of the following is not true?a)Indifference curves cannot inters...
Each indifference curve is convex to the origin, and no two indifference curves ever intersect. Consumers are always assumed to be more satisfied when achieving bundles of goods on higher indifference curves. If a consumer's income increases, the curve will move higher up on a graph because the consumer can now afford more of each type of good.
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Which of the following is not true?a)Indifference curves cannot inters...
Ans: Option 'B' is correct because --
~Two INDIFFERENCE CURVES can't be TANGENT to each other.
~The POINTS of TANGENCY, if they're different, income would not remain same.
~On all BUNDLES on an IC, the LEVEL of UTILITY derived by the individual is SAME.
~However, the DIFFERENT PRICES of goods would makes each of those bundles COST DIFFERENTLY. Hence the TOTAL EXPENDITURE to buy those bundles would be DIFFERENT.
~Two INDIFFERENCE CURVES can't be TANGENT to each other.
~The POINTS of TANGENCY, if they're different, income would not remain same.
~On all BUNDLES on an IC, the LEVEL of UTILITY derived by the individual is SAME.
~However, the DIFFERENT PRICES of goods would makes each of those bundles COST DIFFERENTLY. Hence the TOTAL EXPENDITURE to buy those bundles would be DIFFERENT.
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Which of the following is not true?a)Indifference curves cannot inters...
Explanation:
Indifference curves represent different combinations of two goods that give an individual the same level of satisfaction. Let's analyze each statement:
Indifference curves cannot intersect each other:
- This statement is true. Indifference curves cannot intersect each other because at the point of intersection, it would mean that the individual is indifferent between two different combinations of goods, which contradicts the definition of indifference curves.
Two indifference curve can be tangent to each other:
- This statement is true. Two indifference curves can be tangent to each other at a point where the individual is just indifferent between the two combinations of goods represented by the curves.
Indifference curves are convex to the origin:
- This statement is true. Indifference curves are typically convex to the origin. This convexity implies that the individual prefers a mix of the two goods rather than extreme combinations.
Indifference curves slopes downward to the right:
- This statement is true. Indifference curves slope downward to the right, indicating the trade-off between the two goods. As the quantity of one good increases, the quantity of the other good must decrease to keep the individual at the same level of satisfaction.
Therefore, the correct answer is option 'B' - Two indifference curve can be tangent to each other.
Indifference curves represent different combinations of two goods that give an individual the same level of satisfaction. Let's analyze each statement:
Indifference curves cannot intersect each other:
- This statement is true. Indifference curves cannot intersect each other because at the point of intersection, it would mean that the individual is indifferent between two different combinations of goods, which contradicts the definition of indifference curves.
Two indifference curve can be tangent to each other:
- This statement is true. Two indifference curves can be tangent to each other at a point where the individual is just indifferent between the two combinations of goods represented by the curves.
Indifference curves are convex to the origin:
- This statement is true. Indifference curves are typically convex to the origin. This convexity implies that the individual prefers a mix of the two goods rather than extreme combinations.
Indifference curves slopes downward to the right:
- This statement is true. Indifference curves slope downward to the right, indicating the trade-off between the two goods. As the quantity of one good increases, the quantity of the other good must decrease to keep the individual at the same level of satisfaction.
Therefore, the correct answer is option 'B' - Two indifference curve can be tangent to each other.
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Which of the following is not true?a)Indifference curves cannot intersect each otherb)Two indifference curve can be tangent to each otherc)Indifference curves are convex to the origind)Indifference curves slopes downward to the rightCorrect answer is option 'B'. Can you explain this answer?
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