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Convex preferences imply that the indifference curves cannot be concave to the origin, i.e. they will either be straight lines or bulge toward the origin of the indifference curve. If the latter is the case, then as a consumer decreases consumption of one good in successive units, successively larger doses of the other good are required to keep ...
Whether indifference curves are primitive or derivable from utility functions; and; Whether indifference curves are convex. Assumptions are also made of a more technical nature, e.g. non-reversibility, saturation, etc. The pursuit of rigour is not always conducive to intelligibility. In this article indifference curves will be treated as primitive.
In the case of two goods and two individuals, the contract curve can be found as follows. Here refers to the final amount of good 2 allocated to person 1, etc., and refer to the final levels of utility experienced by person 1 and person 2 respectively, refers to the level of utility that person 2 would receive from the initial allocation without trading at all, and and refer to the fixed total ...
Indifference curves (as shown at left) are used to show bundles of goods to which a person would assign equal utility. An isoquant (in the image at right) is a curve of equal production quantity for alternative combinations of input usages , and an isocost curve (also in the image at right) shows alternative usages having equal production costs.
In social choice theory, the single-crossing condition is a condition on preferences.It is especially useful because utility functions are generally increasing (i.e. the assumption that an agent will prefer or at least consider equivalent two dollars to one dollar is unobjectionable).
An indifference curve is a set of all commodity bundles providing consumers with the same level of utility. The indifference curve is named so because the consumer would be indifferent between choosing any of these bundles. The indifference curves are not thick because of LNS.
If you do not find a tangency point within the domain then the utility maximising indifference curve for the given budget constraint will be at an intersection between either the x or y axis (depending on whether the slope of the indifference curve is strictly greater than or less than the slope of the budget constraint) - this is a corner ...
A community indifference curve is an illustration of different combinations of commodity quantities that would bring a whole community the same level of utility. The model can be used to describe any community, such as a town or an entire nation.