what is indifference curve?
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An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility.
Only two goods are taken into the consideration. It is assumed that the customer has to make a choice between two goods, provided their prices remains constant.
It is assumed that the customer is not saturatedwith both the commodities and look for more benefits from these two, to have a higher curve to have more satisfaction.
The satisfaction level cannot be measured; thus, the customer ranks his preferences.
When a consumer consumes various goods and services, then there are some combinations, which give him exactly the same total satisfaction. The graphical representation of such combinations is termed as indifference curve.
Only two goods are taken into the consideration. It is assumed that the customer has to make a choice between two goods, provided their prices remains constant.
It is assumed that the customer is not saturatedwith both the commodities and look for more benefits from these two, to have a higher curve to have more satisfaction.
The satisfaction level cannot be measured; thus, the customer ranks his preferences.
When a consumer consumes various goods and services, then there are some combinations, which give him exactly the same total satisfaction. The graphical representation of such combinations is termed as indifference curve.
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its shownig different combination of two goods each combination offering the same level of satisfaction to the concumer.
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