Economy, asked by vinit9493, 11 months ago

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

Answers

Answered by 2002bhaveshp4t8mf
2

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.

Answered by sweetmonika1469
1

Explanation:

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

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