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Q:
A) 1 only | B) 1 and 2 |
C) 2 and 3 | D) 3 only |
Answer: B) 1 and 2
Explanation:
Explanation:
The indifference curves cannot intersect each other.
Higher indifference curve represents a higher level of satisfaction because higher IC means a bundle consisting more of both the goods or same quantity of one good n more quantity of the other good .Hence statement 2 is correct and 3 is incorrect.
Indifference curves is convex to the point of origin because of diminishing Marginal Rate of Substitution.