Which of the following are true about indifference curves?

(A) All the points lying on an indifference curve provide the consumer with different levels of satisfaction.
(B) Indifference curves are convex to the origin due to law of Diminishing Marginal Rate of Substitution.
(C) Higher indifference curve gives greater level of utility.
(D) In the case of perfect substitutes, indifference curves are straight lines.

Choose the correct answer from the options given below:

(B), (C) and (D) only

The correct answer is Option (4) → (B), (C) and (D) only

(A) All the points lying on an indifference curve provide the consumer with different levels of satisfaction. — False. All points on the same indifference curve give the same level of satisfaction, not different.

(B) Indifference curves are convex to the origin due to law of Diminishing Marginal Rate of Substitution. — True. They are convex because as one good is substituted for another, the willingness to substitute decreases.

(C) Higher indifference curve gives greater level of utility. — True. A higher indifference curve represents more satisfaction to the consumer.

(D) In the case of perfect substitutes, indifference curves are straight lines. — True. For perfect substitutes, the consumer is willing to substitute one good for the other at a constant rate, meaning the Marginal Rate of Substitution (MRS) is constant. A constant MRS results in a straight-line indifference curve (with a negative slope).