Characteristics of Indifference Curve along with its reasons

 Following are the characteristics of indifference curve:-

1. It slopes downward, left to right.
   Reason: The only way an individual can increase consumption in one good without gaining utility is to consume another good and generate the same amount of utility. Therefore, the slope is downwards sloping.
2. Slope of Indifference curve indicates MRS (Marginal Rate of Substitution).
   Reason: Most indifference curves are usually convex because as as individual consume more of one good you will consume less of the other. So, MRS will decrease as one moves down the indifference curve. This is known as the law of diminishing marginal rate of substitution.
3. In an indifference map, higher IC indicates higher level of satisfaction.
   Reason: Higher indifference curve shows higher level of satisfaction. Because, higher IC corresponds to higher level of income of the consumer or higher level of consumption of both goods X and Y.
4. Indifference curves never cross or intersect each other.
   Reason: It is because at the point of tangency, the higher curve will give as much as of the two commodities as is given by the lower indifference curve. This is absurd and impossible.
5. When two commodities are consumed, it neither touches the X-axis nor Y-axis.
   Reason: It happens because indifference curve analysis assumes consumption of two goods.
1.  If the indifference curve touches the Y-axis, it would mean that consumption of commodities on the X-axis is zero.
2. Similarly, if indifference curve touches X-axis, it would mean that consumption of commodity on the Y-axis is zero