1. Higher Indifference Curves represent higher levels of satisfaction: In the diagram, the indifference curve IC2 lies above and to the right of the Indifference curve IC1. Since IC2 is the higher indifference Curve, it shows higher satisfaction. Like wise IC3 lies above IC2.
2. ICs must slope from left downward to the right: Indifference curves must slope down from left to the right, ie., they must have a negative slope. Our assumption that the consumer would like to have more of both goods helps in proving this. As we move from left to the right on an IC, it means more of the commodity represented on the X axis. With every increase in the amount of one commodity, the consumer becomes better off.
3. Indifference curves do not intersect: The indifference curves can never meet or intersect so that only one indifference curve can pass through any one point in the indifference map. In Other words, one combination of goods can lie only on one IC. In the diagram given below, two indifference curves IC, and IC2 intersect each other at E. Since points C and E lie on the same indifference curve IC„ the consumer is indifferent between them. But both are giving him different levels of satisfaction which is not possible if he is in same difference curve.
If the two ICs intersect, the same IC show different level of satisfaction.In the above diagram ‘A’ and ‘B’ are representing two levels of satisfaction which is absurd, similarly incase of IC2 also.
4. Indifference Curves are convex to the origin: The MRS between two goods diminishes as we move from left down to the right along the IC as shown below. Points P and Q lie on indifference curve IC. As we move from P to Q, there is an increase of commodity A but a corresponding lessening of commodity B. That means MRS goes on diminishing along the IC.
So IC should be convex to the origin.
5. The IC cannot be a vertical or a horizontal line: If IC is vertical or horizontal, it means that the consumer consumes by changing only one commodity without altering the consumption of other commodity. This cannot be true as the consumer is changing consumption of both the commodities to get maximum satisfaction.
If it is vertical, product x remains the same and if it is horizontal, product y remains the same. But this cannot lead to substitution.
