Indifference Curve Diagram
This is an important and obvious feature of indifference curves.
Indifference curve diagram. Correspondingly the equilibrium point will also shift the right words as shown in the following figure. 1 indifference curves are negatively sloped. Such a diagram is known as an indifference map where each indifference curve corresponds to a different indifference schedule of the consumer.
In other words the consumer would be indifferent to these different combinations. Since point a is an indifference curve ic 2 it represents a higher level of satisfaction to the consumer c than point b which is located on the lower indifference c curve ic 1 point c however lies on both the curves. Shape of an indifference curve the indifference curve um has four points labeled on it.
Example of choice of goods which give consumers the same utility table plotted as indifference curve. An indifference curve shows combination of goods between which a person is indifferent. An indifference curve is a contour line where utility remains constant across all points on the line.
An indifference curve shows combinations of goods that provide an equal level of utility or satisfaction. Eating doughnuts and reading paperback books. The four properties of indifference curves are.
Definition explanation and diagram. It is like a contour map showing the height of the land above sea level where instead of height each indifference curve represents a level of satisfaction. The consumer gets the maximum satisfaction or is in equilibrium at point c by purchasing oe units of good y and oh units of good x with the given money income.
Assumptions of indifference curve analysis. Indifference curve with diagram as a result of an increase in the consumer s income the budget lines will shift right words. In the diagram 3 11 there are three indifference curves ic1 ic2 and ic3.
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