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What is shape of indifference curve?
what will be the shape of indifference curve if one of the two goods is a free commodity
What is the relationship between perfect substitutes and indifference curves?
Perfect substitutes are goods that can be easily exchanged for one another at a constant rate. Indifference curves represent combinations of goods that provide the same level of satisfaction to a consumer. In the case of perfect substitutes, the indifference curves are straight lines, indicating that the consumer is equally satisfied with any combination of the two goods.
Is it possible to use indifference curve to depict different kinds of preferences?
Indifference curves can indeed be used to depict different kinds of preferences. An indifference curve is really a graph that is used to show different bundles of goods.
What is indifference curve approach?
indifference curve approach show the combination of two goods that an individual would be willing to buy, and which would make the buyer equally satisfied (or different). indifference curve assume that more is preferred to less. thay are convex as seen from the origin. the indifference curve form an entire map of various level of satisfaction..
What is the relationship between perfect substitutes and indifference curves in consumer theory?
Perfect substitutes are goods that can be easily substituted for one another in a consumer's preferences. In consumer theory, when goods are perfect substitutes, the indifference curves are straight lines because the consumer is equally satisfied with any combination of the two goods. This means that the consumer is indifferent between different combinations of the goods as long as the total utility remains the same.
How can one effectively draw an indifference curve?
To effectively draw an indifference curve, one should plot different combinations of two goods on a graph where the consumer is equally satisfied. The curve should be downward sloping and convex to the origin, showing the trade-off between the two goods.
Why indifference curves are always negatively sloped?
its something to do with a non satiation assumption. ie if all the bundles on the indifference curve are "goods" (actively wanted products) then the indifference curve slopes downward from L to R. if there is a "good" and a "bad" on the curve then it will be positively sloped. (upward from L to R)
An indifference curve consists of quantity combinations of two goods that yield?
the same total satisfaction :)
How do indifference curves represent the concept of perfect substitutes in economics?
Indifference curves in economics represent the concept of perfect substitutes by showing that consumers are equally satisfied with either of the two goods being substituted. This means that the consumer is indifferent between the two goods and is willing to trade one for the other at a constant rate.
Can two indifference curve have the same utility?
indifference curve is the loci of points, where each represents a combination of goods in different ratios but gives equal amount of satisfaction. indifference curves help us to know which combinations of goods give us equal satisfaction and which increase it. they dont intersect eachother thus its not possible for two indifference curves to have the same level of satisfaction.
How do indifference curves differ for perfect substitutes compared to other types of goods?
Indifference curves for perfect substitutes are straight lines, indicating that the consumer is willing to trade one good for another at a constant rate. In contrast, indifference curves for other types of goods are typically curved, showing that the consumer's willingness to trade one good for another changes as they consume more of each good.
How to draw an indifference curve showing income consumption curve for normal goods?
When income of consumer incresing this will lead the indifference curve to shift out ward in case for normal goods.So incresing in income of consumer it lead to incresing the purchasing power of consumer or consumer will demand much goods.
