Chapter 10.A, Problem 3P

To determine

Concept Introduction:

Indifference Curve: It is a line that shows all the consumption bundles that provides the same amount of total utility for an individual.

The different properties of indifference curves are:

• The two indifference curve lines never intersect each other.
• The farther the indifference curve is from the origin the more utility it has.
• Indifference Curve slopes downwards because more is better.
• Indifference Curve has a convex shape because of the diminishing marginal utility which states that the marginal utility of an additional unit decreases.