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31 maj 2024 · An indifference curve is a graph used in economics that represents when two goods or commodities would give a consumer equal satisfaction and utility. Learn how it works.
27 sie 2022 · Indifference Curve (or IC) is an economic phenomenon that helps understand customer preference. It is basically a graphical representation showing different combinations of two commodities that give a similar level of satisfaction to a customer; hence, the customer is indifferent between them.
21 sie 2024 · An indifference curve (IC) is a graphical representation of different combinations or consumption bundles of two goods or commodities, providing equal levels of satisfaction and utility for the consumer.
A simplified explanation of indifference curves and budget lines with examples and diagrams. Illustrating the income and substitution effect, inferior goods and Giffen goods
17 sty 2021 · ICs are curved inwards; thus they are convex to the origin. This implies that as the consumer continues to substitute commodity X for commodity Y, MRS of X for Y diminishes along the IC.
What is an Indifference Curve? An indifference curve is a contour line where utility remains constant across all points on the line. In economics, an indifference curve is a line drawn between different consumption bundles, on a graph charting the quantity of good A consumed versus the quantity of good B consumed.
This means, any combination of two goods on the higher curve give higher level of satisfaction to the consumer than the combination of goods on the lower curve. In the above figure, IC1 and IC2 are two indifference curves, and IC2 is higher than IC1.
