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An example of how indifference curves are obtained as the level curves of a utility function. A graph of indifference curves for several utility levels of an individual consumer is called an indifference map. Points yielding different utility levels are each associated with distinct indifference curves and these indifference curves on the ...
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An example indifference curve is shown below: Each indifference curve is a set of points, each representing a combination of quantities of two goods or services, all of which combinations the consumer is equally satisfied with. The further a curve is from the origin, the greater is the level of utility.
Description English: Illustrates three of infinitely many indifference curves, to illustrate that the household ought to choose that curve (I2) which is tangent to the household's budget line, and then to consume at the point of tangency for maximum utility.
An example is shown in Fig. 6, where the purple line is the Pareto set corresponding to the indifference curves for the two consumers. The vocabulary used to describe different objects which are part of the Edgeworth box diverges.
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You are free: to share – to copy, distribute and transmit the work; to remix – to adapt the work; Under the following conditions: attribution – You must give appropriate credit, provide a link to the license, and indicate if changes were made.