The correct answer is Option (4) → (B), (C) and (D) only
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(A) Indifference curve slopes upwards from left to right. (Incorrect). An indifference curve slopes downward from left to right, showing that to gain more of one good, the consumer must give up some of the other good to maintain the same level of satisfaction. An upward-sloping curve would mean that a consumer is getting more of both goods, which would increase utility, contradicting the definition that all points on the curve yield equal utility.
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(B) Higher indifference curve gives greater level of utility. (Correct). This is a fundamental property based on the assumption that consumers prefer more of a good to less (monotonic preference). Curves further away from the origin represent larger bundles of goods and thus higher satisfaction.
- (C) Indifference curve slopes downwards from left to right. (Correct). This reflects the trade-off. To maintain the same level of utility (satisfaction), if a consumer increases the consumption of one good (moving right), they must decrease the consumption of the other good (moving down).
- (D) Two indifference curves never intersect each other. (Correct). Intersection would violate the assumption of transitivity and the fact that a higher indifference curve represents a higher level of utility. If they intersected, the point of intersection would simultaneously represent two different levels of utility, which is a contradiction.
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