Now, we are going to talk about properties of indifference curve. Question number 6 comes. What are the properties of indifference curve? We have already studied number 4. Right sir?
Yes, come. First, the first property is IC is downward sloping. The indifference curve, how does it look? Downward sloping.
Reasoning, remember? Point number 1, which I had taught you. You have to write the whole reasoning.
Second, IC is convex. to origin point number two which one? law of DMU it was there in our previous video third, you have already discussed this with me higher IC represents higher Utility.
Higher IC represents higher utility or higher satisfaction. What is this? Look carefully. We have to analyze this very carefully. Good X. Good y.
In two cases you will analyze it. First of all I am telling you in case 1. IC1, IC2. In two cases you have to analyze this thing.
First of all in case, look carefully. In first case I am saying the quantity of good y. Y1 units. But in case of IC1, good X is X1.
And in case of IC2, good X is X2. Now see. If you look at this thing carefully, on IC1, good X is... How much is it? x1 units, good y how much is it getting?
y1 units, on IC2, on IC2, good x how much is it getting? x2 units, or good y? y2 units sorry y1 units now see the quantity of good y is same both in case of ic1 and ic2 here also y1 units are there here also y1 units are there but quantity of good x is more in case of ic2 IC2 pe good x humko kitna mil raha hai? X2.
Chakki IC1 me good x kitna mil raha tha? X1. X1, X2.
Quantity of good y is same in both the situation but the quantity of good x is different. Good x is more in case of IC2. And we know more good means more utility.
Means what we have to write? Though the quantity of good x is good y is same in both combinations a and b but the quantity of good y for a good x is more in case of combination B on IC2 and we know more goods means more utility more goods means more utility therefore higher IC represents higher satisfaction therefore higher IC represents higher satisfaction good Y quantity same thing good X quantity combination B that is on IC 2 more goods means more utility so therefore higher IC represents higher satisfaction this situation you have to see in second case first of all you note this then case 2 now In case 2, we will make the quantity of wood x constant. IC1, IC2. I will make the quantity of wood x constant. X1, Y1.
Y2, combination A, combination B. Now on IC1, good X is X1, good Y is Y1. IC2, good X is X1, but good Y is Y2. Now good X's quantity in both the combinations whether it is A or B.
is absolutely same but the good y ki quantity same hai? Nahi, good y zyada hai combination b me. Though the quantity of good x is same in both combinations a and b but the quantity of good y is more in case of combination b on IC2 and we know more good means more utility therefore higher IC represents higher utility. In the third property, you have to explain both the cases, only then you will get the marks.
And it is possible that the third case may be asked specifically, show that higher IC represents higher utility, 4 number mark, you have to explain both the cases. So, these were your properties of indifference curve.