What is Indifference Curve? Definition of Indifference.
An example of an indifference map with three indifference curves represented In economics, an indifference curve connects points on a graph representing different quantities of two goods, points between which a consumer is indifferent.
The importance of indifference curve analysis in economics are as follows: 1. The approach of the indifference curve is based on ordinal utility in.
Economics: What Is the Indifference Curve, definition, properties, assumptions, application, significance, criticism, analysis, limitation and criticism.. Indifference curves are assumed to be convex to the origin. It denotes that indifference curve technique is based on the axiom of diminishing marginal rate of substitution.. For example.
Indifference Curve Definition: The Indifference Curve shows the different combinations of two goods that give equal satisfaction and utility to the consumers. In other words, the indifference curve is the graphical representation of different combinations of goods (generally two), for which the consumers are indifferent, in terms of the overall satisfaction and the utility.
An indifference curve refers to a curve that depicts all the possible combinations of two commodities: X and Y, which gives the consumer the same level of satisfaction.
Given the definition of an indifference curve—that all the points on the curve have the same level of utility—if point F on indifference curve Uh is preferred to point B on indifference curve Um, then it must be true that all points on indifference curve Uh have a higher level of utility than all points on Um.
Indifference curve definition is - a curve used in economics to indicate all possible comparative quantities of goods or services equally demanded by or of equal use to a consumer.