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The negative slope of the indifference curve reflects the assumption of the monotonicity of consumer's preferences, which generates monotonically increasing utility functions, and the assumption of non-satiation (marginal utility for all goods is always positive); an upward sloping indifference curve would imply that a consumer is indifferent ...
The indifference curves are L-shaped and their corners are determined by the weights. E.g., ... all goods are normal goods. [2] Competitive equilibrium
In economics, inferior goods are goods whose demand decreases when consumer income rises (or demand increases when consumer income decreases). [2] [3] This behaviour is unlike the supply and demand behaviour of normal goods, for which the opposite is observed; [4] normal goods are those goods for which the demand rises as consumer income rises ...
A set of convex-shaped indifference curves displays convex preferences: Given a convex indifference curve containing the set of all bundles (of two or more goods) that are all viewed as equally desired, the set of all goods bundles that are viewed as being at least as desired as those on the indifference curve is a convex set.
The substitution effect is negative as indifference curves are always downward sloping. However, the same does not apply to income effect as it depends on how consumption of a good changes with income. The income effect on a normal good is negative, so if its price decreases, the consumer's purchasing power or income increases.
Whether indifference curves are primitive or derivable from utility functions; and; Whether indifference curves are convex. Assumptions are also made of a more technical nature, e.g. non-reversibility, saturation, etc. The pursuit of rigour is not always conducive to intelligibility. In this article indifference curves will be treated as primitive.
A good is classified as a normal good when the income elasticity of demand is greater than zero and has a value less than one. If we look into a simple hypothetical example, the demand for apples increases by 10% for a 30% increase in income, then the income elasticity for apples would be 0.33 and hence apples are considered to be a normal good.
If an agent has monotone preferences which means the marginal rate of substitution of the agent's indifference curve is positive. Given two products X and Y. If the agent is strictly preferred to X, it can get the equivalent statement that X is weakly preferred to Y and Y is not weakly preferred to X.