Properties of Indifference Curves:

The main properties of indifference curves are outlined below:

(i) An indifference curve has a negative slope: This means that as less quantity of one commodity is consumed (beer), a greater quantity of the other commodity (apple) must be consumed for the consumer to enjoy the same level of utility

(ii) Indifference curves can never intersect (axiom of transitivity): If two indifference curves intersect, the point of intersection will represent two different levels of utility. Figure 4.7 shows two indifference curves for a consumer that intersect at point x, meaning that the consumer would be indifferent between x and y on IC2 and between x and z in IC1 and hence indifferent between y and z. Since z offers more of both goods than y, this violates the assumption that the consumer usually prefer more to less.