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Differentiate between indifference curve and Budget line.


Differentiate between indifference curve and Budget line is given below:

An indifference curve is a combination of two goods that give the consumer equal satisfaction and utility.
A budget line is a line showing the alternative combinations of any two goods that a consumer can afford at given prices for the goods within given level of income.
All points give the same utility in indifference curve to satisfy consumer. 
Combinations of two selected products that a consumer can afford at specified prices for the products according to their particular income level.
The main use of indifference curves is in the representation of potentially observable demand patterns for individual consumers over commodity.
In budget line Total spending for goods and services can fall short of the budget constraint but may not exceed it. 

Discuss different properties of Indifference curve.
Indifference curves slope downward to the right: This property implies that an indifference curve has a negative slope.
Indifference curves are convex to the origin: The indifference curve is relatively flatter in its right-hand portion and relatively steeper in its left-hand portion.
Indifference curves cannot intersect each other: important property of indifference curves is that they cannot intersect each other.
A higher indifference curve represents a higher level of satisfaction than a lower indifference curve: In other words, the combinations which lie on a higher indifference curve will be preferred to the combinations which lie on a lower indifference curve.

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