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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.
What else can I help you with?
What is the different between indifference map and indiffirence curve?
Indifference curve is a curve that shows consumption bundles that give the consumer the same level of satisfaction. Indifference map, on the other hand Indifference curve is a graph of two or more indifference curves.
How can one graph indifference curves from utility functions?
To graph indifference curves from utility functions, you can plot different combinations of two goods that give the same level of satisfaction or utility to a consumer. Each indifference curve represents a different level of utility, with higher curves indicating higher levels of satisfaction. By using the utility function to calculate the level of satisfaction at different combinations of goods, you can plot these points to create the indifference curves on a graph.
Features of indifference curve?
two indifference curve never cut each other..
What is shape of indifference curve?
what will be the shape of indifference curve if one of the two goods is a free commodity
How is consumer utility maximised using indifference curve and budget line?
Consumer utility is maximized at the point where the budget line is tangent to the highest possible indifference curve. This tangency point represents the optimal combination of goods that a consumer can afford, balancing their preferences (indifference curve) with their budget constraint (budget line). At this point, the marginal rate of substitution between the two goods equals the ratio of their prices, ensuring that the consumer is getting the most satisfaction possible given their financial limitations. Thus, the consumer achieves maximum utility by selecting a consumption bundle that lies on both the budget line and the highest attainable indifference curve.
What is the different between indifference map and indiffirence curve?
Indifference curve is a curve that shows consumption bundles that give the consumer the same level of satisfaction. Indifference map, on the other hand Indifference curve is a graph of two or more indifference curves.
How can one graph indifference curves from utility functions?
To graph indifference curves from utility functions, you can plot different combinations of two goods that give the same level of satisfaction or utility to a consumer. Each indifference curve represents a different level of utility, with higher curves indicating higher levels of satisfaction. By using the utility function to calculate the level of satisfaction at different combinations of goods, you can plot these points to create the indifference curves on a graph.
Features of indifference curve?
two indifference curve never cut each other..
Why indifference curve do not intersect each other?
Indifference curves do not intersect each other because each curve represents a different level of utility or satisfaction for a consumer. If two curves were to intersect, it would imply that the same combination of goods provides two different levels of utility, which is contradictory. Therefore, each curve must maintain a distinct and consistent level of satisfaction, ensuring that higher curves represent greater utility than lower ones. This reinforces the fundamental assumption of consumer preferences in economics.
What is shape of indifference curve?
what will be the shape of indifference curve if one of the two goods is a free commodity
Why indifference curve never touches x axis or y axis?
Indifference curves represent combinations of two goods that provide the same level of utility to a consumer. If an indifference curve were to touch the x-axis or y-axis, it would imply that the consumer is indifferent to having zero quantity of one good, which contradicts the assumption of non-satiation—the idea that more of a good always provides greater utility. As such, consumers derive some level of satisfaction from both goods, preventing the curve from touching either axis.
what is the indifference curve for two goods with imperfect substitutes?
the indifference curve has its usual negatively sloping shape
How is consumer utility maximised using indifference curve and budget line?
Consumer utility is maximized at the point where the budget line is tangent to the highest possible indifference curve. This tangency point represents the optimal combination of goods that a consumer can afford, balancing their preferences (indifference curve) with their budget constraint (budget line). At this point, the marginal rate of substitution between the two goods equals the ratio of their prices, ensuring that the consumer is getting the most satisfaction possible given their financial limitations. Thus, the consumer achieves maximum utility by selecting a consumption bundle that lies on both the budget line and the highest attainable indifference curve.
An indifference curve consists of quantity combinations of two goods that yield?
the same total satisfaction :)
How can I use the indifference curve grapher to analyze consumer preferences and make informed decisions?
To analyze consumer preferences and make informed decisions using the indifference curve grapher, you can plot different combinations of two goods on the graph to see the consumer's preferences. The indifference curves show combinations of goods that provide the same level of satisfaction. By comparing different indifference curves, you can determine the consumer's preferences and make decisions based on their utility maximization.
What does a consumer's indifference curve do?
A consumer's indifference curve represents a graphical illustration of different combinations of two goods that provide the same level of utility or satisfaction to the consumer. Points along the curve indicate that the consumer is indifferent between those combinations, meaning they would derive equal satisfaction from any of them. The shape of the curve typically reflects the consumer's preferences and the rate at which they are willing to substitute one good for another. Indifference curves never intersect and are typically convex to the origin, illustrating diminishing marginal rates of substitution.
Why indifference curve cannot intersect?
Because if they intersected, they would not be "indiffernece" curves. Imagine two intersecting ICs, call them x and y. That means that all points on y have the same utility. Also, all the points on x have the same utility, but that number is different from x. (From this we know that X1 = X2 = X3 = X4 etc etc and the same thing with Y1 = Y2 etc etc where the subscripts are points on the curves). We can refer to each curve by its utility value, call them x and y. So being that they are different curves, we expect them to have different utilities. So, U(x) != U(y). In words, the utility of x is never equal to the utility of y. Now imagine a point at which they cross. We would obviously have a point, let's call it A, where this does not hold true. More importantly though, we need to remember that ALL POINTS ON AN INDIFFERENCE CURVE HAVE THE SAME UTILITY. So back to this interesection at point A, we get X1 = X2 = XA. Also, Y1 = Y2=YA where A is the intersection. From this, we transitively know that X1 = X2 = Y1 = Y2. This creates on obvious problem. It would mean that every point on the two separate indifference curves would have the same utility, which is the complete opposite of the first rule of indifference curves, that all points on them have the same utility.
