Which of the following statements is not true with regard to the standard properties of indifference curves ?
Correct answer: B. indifference curves are bowed outward
- A. Indifference curves are downward sloping
- B. indifference curves are bowed outward
- C. Indifference curves do not cross each other
- D. Higher indifference curve is preferred to lower ones
Explanation
Standard indifference curves are convex to the origin, often described as bowed inward, because the marginal rate of substitution usually diminishes. They are normally downward sloping, non-crossing, and higher curves represent greater satisfaction.
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