Write short notes Indifference curve
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Indifference curve is the locus of various points showing different combinations of two goods providing equal utility to the consumer....
The basic tool of Hicks-Allen ordinal utility analysis of demand is the indifference curve which represents all those combinations of goods which give same satisfaction to the consumer.
The basic tool of Hicks-Allen ordinal utility analysis of demand is the indifference curve which represents all those combinations of goods which give same satisfaction to the consumer.Since all the combinations on an indifference curve give equal satisfaction to the consumer he will be indifferent between them, that is, it will not matter to him which one he gets.
The basic tool of Hicks-Allen ordinal utility analysis of demand is the indifference curve which represents all those combinations of goods which give same satisfaction to the consumer.Since all the combinations on an indifference curve give equal satisfaction to the consumer he will be indifferent between them, that is, it will not matter to him which one he gets.In other words, all combinations of two goods lying on a consumer’s indifference curve are equally desirable to or equally preferred by him. To understand indifference curves, it is better to start with indifference schedules.
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