Question

Indifference curve analysis is old wine in new bottle. Do you agree?

Answer 1

Answer:

Indifference curve analysis is a graph that shows a point where two products offer the same utility to a consumer.

The indifference curve analysis is unfortunately dubbed as old wine in the new bottle as its results and assumptions are based on another economic theory known as the cardinal utility theory.

The theories and assumptions made on the indifference curve are derived from the cardinal utility theory, only presented differently.

There is a difference between the Cardinal and the Ordinal approach obviously. It is illogical to measure Utils arithmetically in my personal opinion.

Answer 2

Explanation:

Indifference curve analysis is old wine in new bottle. Do you agree?