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What is the Difference between Income consumption curve and expansion path curve?
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.
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.
What is the relationship between the indifference curve and perfect substitutes?
The relationship between the indifference curve and perfect substitutes is that in the case of perfect substitutes, the indifference curve is a straight line. This means that the consumer is equally satisfied with either good and is willing to trade one for the other at a constant rate.
What is the tangent between a budget constraint and an indifference curve on an indifference map?
It is the equilibrium point of utility maximization.
In what ways are firms and rsquo isoquant maps and individuals and rsquo indifference curve maps based on the same idea What are the most important ways in which these concepts differ?
Both isoquant maps for firms and indifference curve maps for individuals illustrate the trade-offs between two inputs or goods while maintaining the same level of output or utility, respectively. They both represent combinations of resources that yield equivalent outcomes, allowing for substitution between those resources. The key difference lies in their application: isoquants focus on production inputs (like labor and capital), whereas indifference curves focus on consumer preferences for different goods. Additionally, isoquants typically exhibit diminishing marginal rates of technical substitution, while indifference curves show diminishing marginal rates of substitution for goods.
What is the Difference between Income consumption curve and expansion path curve?
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.
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.
What is the relationship between the indifference curve and perfect substitutes?
The relationship between the indifference curve and perfect substitutes is that in the case of perfect substitutes, the indifference curve is a straight line. This means that the consumer is equally satisfied with either good and is willing to trade one for the other at a constant rate.
What is the tangent between a budget constraint and an indifference curve on an indifference map?
It is the equilibrium point of utility maximization.
In what ways are firms and rsquo isoquant maps and individuals and rsquo indifference curve maps based on the same idea What are the most important ways in which these concepts differ?
Both isoquant maps for firms and indifference curve maps for individuals illustrate the trade-offs between two inputs or goods while maintaining the same level of output or utility, respectively. They both represent combinations of resources that yield equivalent outcomes, allowing for substitution between those resources. The key difference lies in their application: isoquants focus on production inputs (like labor and capital), whereas indifference curves focus on consumer preferences for different goods. Additionally, isoquants typically exhibit diminishing marginal rates of technical substitution, while indifference curves show diminishing marginal rates of substitution for goods.
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.
Features of indifference curve?
two indifference curve never cut each other..
What is the relationship between indifference curve and budget constraint?
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 is shape of indifference curve?
what will be the shape of indifference curve if one of the two goods is a free commodity
Can a single indifference curve cross itself?
a single indifference curve cannot cross itself.
What are the major characteristics of an indifference curve?
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?
Explain the consumer equilibrium with the help of indifference curve?
