Indifference curve defined as the center of points,each representing a different combination of two goods but surrender the same level of utility or satisfaction. Since each combination of two goods yields the same level of utility, the consumer is indifferent between any two combination of goods when it comes to making a choice between them. Indifference curve is also called iso utility curve and equal utility curve. For example lets us suppose that consumer consume only two commodity A and B and she makes four combination which she calls x,y,z,w all these combinations yield him equal utility. Therefore, she is indifferent between the combination x,y,z,w of two commodities A and B. If consumer meet with equal good combinations he would be indifferent between the combinations. when such combination are plotted graphically the resulting curve is called as indifference curve.
PROPERTIES OF INDIFFERENCE CURVE
1) Indifference curve have a negative slope
2)indifference curve convex to origin
3) indifference do not intersect
PROPERTIES OF INDIFFERENCE CURVE
1) Indifference curve have a negative slope
2)indifference curve convex to origin
3) indifference do not intersect
No comments:
Post a Comment