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.
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.
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.
It is the equilibrium point of utility maximization.
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..
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.
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.
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.
Marginal utility is the satisfaction a consumer receives from consuming an additional unit of a good The indifference curve shows different combinations of 2 goods that the consumer is indifferent towards
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.
It is the equilibrium point of utility maximization.
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..
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.
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..
Indifference curve: ordinal-based preference structure, based on WARP (weak axiom of revealed preferences). Marshellian: cardinal-based preference structure.
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