Question

Can an indifference curve be downward sloping in one section, but then bend backward so that it forms a "hook" at the end of the indifference curve?

Answer 1

Suppose that an indifference curve slopes upward. If​ so, then the consumer could be indifferent between two bundles that lie on the same indifference​ curve, although one of the bundles would contain more of both consumption goods. ​ Therefore, if an indifference curve has a​ hook, sloping​ upward, then that​ consumer's preferences will violate the assumption of​ more-is-better. Cannot form a hook because it then would be upward sloping.