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.
income expansion curve The ICC is a line that is formed when many indifference curves are seen and their attainable points are plotted. The line that is formed by connecting these points is the ICC. The expansion path is the same concept, but for isoquants. Isoqants being the two inputs that are needed in production. indifference curves are from consumer theory that a person has to choose between two goods.
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.
It is the equilibrium point of utility maximization.
budget line shows purchasing power of an consumer but indifference curve show willingness of consumer for two commodities.
two indifference curve never cut each other..
income expansion curve The ICC is a line that is formed when many indifference curves are seen and their attainable points are plotted. The line that is formed by connecting these points is the ICC. The expansion path is the same concept, but for isoquants. Isoqants being the two inputs that are needed in production. indifference curves are from consumer theory that a person has to choose between two goods.
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.
It is the equilibrium point of utility maximization.
budget line shows purchasing power of an consumer but indifference curve show willingness of consumer for two commodities.
two indifference curve never cut each other..
The tangency point of Indifference curve and budget line shows the Marginal Rate of Substitution between X and Y commodities. Consumer's equilibrium is achieved at that point.
what will be the shape of indifference curve if one of the two goods is a free commodity
a single indifference curve cannot cross itself.
The three major characteristics of an indifference curve are: 1. They are negatively sloped 2. They are convex to the origin 3. Indifference curve cannot be intersected
Explain the consumer equilibrium with the help of indifference curve?
the indifference curve has its usual negatively sloping shape
Yes. The height of an indifference curve is the marginal rate of substitution.