Indifference curves, Microeconomics

Assignment Help:

Indifference curves present all possible combinations of market baskets that give the similar level of satisfaction to a person.

2313_Indifference curve.png

750_Indifference curve1.png

Indifference Curves

1. Indifference curves slope downward at the right.

       If it sloped upward than it would violate the hypothesis that more of any commodity is selected to less.

2. Any market basket remains above and to the right of an indifference curve is preferred to any market basket that remains on the indifference curve.

An indifference map is a set of indifference curves that explains a person’s preferences for every combinations of two commodities.

       Every indifference curve in the map reveals the market baskets among which the person is indifferent.

415_Indifference curve2.png

Indifference Curves

 At last, indifference curves cannot cross.

 This would disturb or violate the assumption that much is preferred to less.

2336_Indifference curve3.png


Related Discussions:- Indifference curves

Time serie, uses of time series in indian economy

uses of time series in indian economy

Production possibilities curve .., How does the production possibilietes cu...

How does the production possibilietes curve relate to present day economics?

Explain and illustrate the economy adjustment in medium run, 1- Suppose the...

1- Suppose the economy is currently in recession, and the exchange rate if fixed using the IS-LM model. a) explain and illustrate the economy adjustment ( in the medium run)

Production possiblities curve, suppose either computers or televisions can ...

suppose either computers or televisions can be assembled with the following labor inputs: units produced: 1 2 3 4 5 6 7 8 9 10 total labor used: 3 7 12 18 25 33 42 54 70 90 Draw th

Production function and returns to factors, what is the law of diminishing ...

what is the law of diminishing marginal product? explanation with the help of proper schedule and diagram.

How multinational companies help developing countries, Evaluate the role of...

Evaluate the role of multinational companies in helping developing countries to achieve economic growth/development. Explanation of growth; enhance in GDP per time period Ex

What is exchange rate, Q. What is Exchange Rate? Exchange Rate: The ‘pr...

Q. What is Exchange Rate? Exchange Rate: The ‘price' at which currency of one country can be converted into the currency of another country. A country's currency is ‘strong,'or

Demand forecasting, What is Demand Forecasting? Explain in brief various me...

What is Demand Forecasting? Explain in brief various methods of forecasting Demand.

Marginal Cost, Can marginal cost be constant? If so, does this mean that ma...

Can marginal cost be constant? If so, does this mean that marginal cost are equal to average variable cost?

Economic models, the general characterictics of economic models,its limitat...

the general characterictics of economic models,its limitations and verification

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd