A Typical Indifference Curve
Shows all combinations of goods that give a consumer the same level of utility. Shows that as a consumer has more of a good he is less willing to exchange it for one unit of another good. Circular Flow Of Income And Methods Of Calculating National Income Circular Flow Of Income Economics Notes Economics Characteristics of Indifference Curves. . All of the above 12 A utility. Shows all combinations of goods that give a consumer the same level of utility. Indifference curves must be downward sloping. Moreover we determined in part b that MRS x y is diminishing. Characteristics of indifference curves. Bshows that as a consumer hasmore of a good he is less willing to exchange it for one unit ofanother good. Shows all combinations of goods. Therefore the indifference curves must be bowed in towards the origin. Indifference curves are down-sloping due to the diminishing average product. Shows al...