Which of the following reasons given for a feature of an indifference curve is NOT correct?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → It is convex to the origin because the MRS rises as bananas increase.
The convex shape comes from a falling MRS.
Option (1) It slopes downward because more bananas must be balanced by fewer mangoes. — True. To keep satisfaction the same, more bananas must be balanced by fewer mangoes.
Option (2) It is convex to the origin because the MRS rises as bananas increase. — False. The MRS diminishes as bananas increase, and that makes the curve convex.
Option (3) Two curves cannot intersect because that would lead to conflicting results. — True. If two curves met, two bundles with different satisfaction would come out equally good.
Option (4) All bundles on it are equally good because they give the same utility. — True. Every bundle on one curve gives the same level of satisfaction.
NCERT (2026-27): “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. This is the most common shape of an indifference curve. …” “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.” “3.Two indifference curves never intersect each other: Two indifference curves intersecting each other will lead to conflicting results. …” “2.1.2 Ordinal Utility Analysis … All the points such as A, B, C and D lying on an indifference curve provide the consumer with the same level of satisfaction. …” |