Which of the following statements correctly describes the nature of indifference curve ?

(A) Indifference curve slopes downwards from left to right

(B) A lower indifference curve represents lower cost to consumer

(C) A higher indifference curve gives higher level of satisfaction

(D) Two indifference curves never intersect each other

(E) Indifference curves are always parallel to each other

Choose the correct answer from the options given below :

(A), (C),(D) Only

The correct answer is option (3) : (A), (C),(D) Only

Here's the explanation for each statement :

(A) Indifference curve slopes downwards from left to right : This statement is true. Indifference curves generally slope downward from left to right, indicating that as you move along the curve, the consumer is willing to give up some of one good to obtain more of the other while keeping the level of satisfaction constant.

(B) A lower indifference curve represents lower cost to the consumer : This statement is not true. The position of an indifference curve does not directly represent the cost to the consumer. It represents different combinations of goods that provide the same level of satisfaction.

(C) A higher indifference curve gives a higher level of satisfaction : This statement is true. Higher indifference curves represents a higher level of satisfaction because they indicate combinations of goods that the consumer prefers over those on lower indifference curves.

(D) Two indifference curves never intersect each other : This statement is true. Indifference curves do not intersect because by definition each curve represents a specific level of satisfaction, and a point on one curve cannot represent the same level of satisfaction as a point on another curve.

(E) Indifference curves are always parallel to each other : This statement is not true. Indifference curves can be convex or concave to the origin, and their shape depends on the consumer's preferences. They may not always be parallel to each other.