Indifference curves, Microeconomics

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Indifference curves present all possible combinations of market baskets that give the similar level of satisfaction to a person.

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Indifference Curves

1. Indifference curves slope downward at the right.

       If it sloped upward than it would violate the hypothesis that more of any commodity is selected to less.

2. Any market basket remains above and to the right of an indifference curve is preferred to any market basket that remains on the indifference curve.

An indifference map is a set of indifference curves that explains a person’s preferences for every combinations of two commodities.

       Every indifference curve in the map reveals the market baskets among which the person is indifferent.

415_Indifference curve2.png

Indifference Curves

 At last, indifference curves cannot cross.

 This would disturb or violate the assumption that much is preferred to less.

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