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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.
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∙ 11y ago
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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.
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
An indifference curve consists of quantity combinations of two goods that yield?
the same total satisfaction :)
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.
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.
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
what is the indifference curve for two goods with imperfect substitutes?
the indifference curve has its usual negatively sloping shape
An indifference curve consists of quantity combinations of two goods that yield?
the same total satisfaction :)
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.
What are the influence of marginal rate substitution on indifference curve?
the two difference of curve is radios
Indifference curve approach?
it shows that the consumer would buy two different good or service to get more utility from them and for this purpose he prefer one good more than other
What is Consumer equilibrium under ordinal utility approach?
Consumer equilibrium is the point where consumer attains highest level of satisfaction. There are two conditions of equilibrium under ordinal approach 1- Necessary Condition: 'Budget line is tangent to the highest possible indifference curve.' 2- Sufficient Condition: 'At equilibrium, Indifference curve must be convex to the origin' Thus, at equilibrium , Px/Py (absolute slope of Budget line) = dy/dx (absolute slope of Indifference Curve) (In simple words, it'd determination of consumer's equilibrium with the help of Indifference curve.)
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 difference between indifference curve and budget line?
budget line shows purchasing power of an consumer but indifference curve show willingness of consumer for two commodities.
Distinguish between indifference curve and isoquants?
indifference curve is a combination of two commodities. where as, isoquant curve shows a relationship between of variable factor i.e. labour and fixed factor i.e. capital.
