Match each feature of an indifference curve in List-I with its reason in List-II.
| List-I | List-II | ||
|---|---|---|---|
| (A) | It slopes downward from left to right | (I) | The marginal rate of substitution diminishes |
| (B) | It is convex to the origin | (II) | Intersecting curves would lead to conflicting results |
| (C) | A higher curve gives a higher level of utility | (III) | More bananas must be balanced by fewer mangoes |
| (D) | Two curves never intersect | (IV) | The marginal utility of each good is positive |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A) - (III), (B) - (I), (C) - (IV), (D) - (II)
Each feature of an indifference curve follows from one idea about the consumer’s satisfaction.
| List-I | List-II | Reason |
|---|---|---|
| (A) It slopes downward from left to right | (III) More bananas must be balanced by fewer mangoes | Satisfaction stays the same only if a gain in one good is offset by a loss in the other. |
| (B) It is convex to the origin | (I) The marginal rate of substitution diminishes | She gives up fewer mangoes for each extra banana, so the curve flattens. |
| (C) A higher curve gives a higher level of utility | (IV) The marginal utility of each good is positive | More of a good with positive MU adds to satisfaction. |
| (D) Two curves never intersect | (II) Intersecting curves would lead to conflicting results | One bundle would have to give two different levels of satisfaction. |
NCERT (2026-27): “1. Indifference curve slopes downwards from left to right: … Thus, as long as the consumer is on the same indifference curve, an increase in bananas must be compensated by a fall in quantity of mangoes.” “Shape of an Indifference Curve It may be mentioned that the law of Diminishing Marginal Rate of Substitution causes an indifference curve to be convex to the origin. …” “2.Higher indifference curve gives greater level of utility: As long as marginal utility of a commodity is positive, an individual will always prefer more of that commodity, as more of the commodity will increase the level of satisfaction.” “3.Two indifference curves never intersect each other: Two indifference curves intersecting each other will lead to conflicting results. …” |