Identify the incorrect statement, in context of properties of indifference curve:-

IC is concave to the origin

The correct answer is Option 2: IC is concave to the origin

The law of Diminishing Marginal Rate of Substitution causes an indifference curve to be convex to the origin. This is the most common shape of an indifference curve. The other options are correct:

a. An indifference curve slopes downwards from left to right (correct), which means that in order to have more of bananas, the consumer has to forego some mangoes. If the consumer does not forego some mangoes with an increase in number of bananas, it will mean consumer having more of bananas with same number of mangoes, taking her to a higher indifference curve. 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.

c. Higher indifference curve gives greater level of utility (correct): 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. Indifference curves farther from the origin represent higher levels of satisfaction because they represent combinations of goods that yield more utility to the consumer.

d. Two indifference curves never intersect each other (correct): Two indifference curves intersecting each other will lead to conflicting results. Indifference curves do not intersect because if two indifference curves intersected, it would mean that there are two different combinations of goods that yield the same level of satisfaction to the consumer, which is not possible.