5.7 : Features of Indifference Curves I

Indifference curves have a few features. Two of those features are that consumers prefer a higher indifference curve, and indifference curves have a downward slope.

Consumers Prefer a Higher Indifference Curve

People generally prefer to consume more goods rather than less. This concept is visually represented by the position of the indifference curves. The higher the curve, the larger the quantities of goods it represents, and as a result, the higher the consumer preference. For example, market basket A comprises ten sandwiches and five cups of coffee. Market basket B has more than ten sandwiches and more than five cups of coffee. Then basket B will be on a higher indifference curve, and it will be more preferred by the consumer.

Indifference Curve Slopes Downward

The slope of an indifference curve shows how much a consumer is willing to give up one good for another. Usually, the consumer enjoys both goods. So, if the amount of one good is decreased, the amount of the other good should be increased. This will keep the consumer just as satisfied. That is the reason that indifference curves usually slope downwards.