Question

Abstract of consumers equilibrium -Indifference curve analysis

Answer 1

Hi Mate.

1)Indifference curves have the same utility/prize no matter how much quantity of two or more commodities we buy if one of the commodity is increased the other commodity is to be decreased in order to maintain consumer equilibrium.So the graph of indifference curve always points to same value/utility i.e if y coordinate of the curve increases then x coordinate decreases and vice versa to maintain consumer equilibrium.