Search results
Results from the WOW.Com Content Network
The negative slope of the indifference curve implies that the marginal rate of substitution is always positive; Complete, such that all points on an indifference curve are ranked equally preferred and ranked either more or less preferred than every other point not on the curve. So, with (2), no two curves can intersect (otherwise non-satiation ...
Rational normal curve; Rose curve; Curves with genus 1 ... Indifference curve; J curve; Kuznets curve ... An elementary treatise on cubic and quartic curves by Alfred ...
A set of convex-shaped indifference curves displays convex preferences: Given a convex indifference curve containing the set of all bundles (of two or more goods) that are all viewed as equally desired, the set of all goods bundles that are viewed as being at least as desired as those on the indifference curve is a convex set.
Figure 2: Income-consumption curve for normal goods. In the figure 2 to the left, B1, B2 and B3 are the different budget lines and I 1, I 2 and I 3 are the indifference curves that are available to the consumer. As shown earlier, as the income of the consumer rises, the budget line moves outwards parallel to itself.
Figure 4: Comparison of indifference curves of perfect and imperfect substitutes. Imperfect substitutes, also known as close substitutes, have a lesser level of substitutability, and therefore exhibit variable marginal rates of substitution along the consumer indifference curve. The consumption points on the curve offer the same level of ...
The indifference relation ~ is an equivalence relation. Thus, we have a quotient set S/~ of equivalence classes of S, which forms a partition of S. Each equivalence class is a set of packages that are equally preferred. If there are only two commodities, the equivalence classes can be graphically represented as indifference curves. Based on the ...
The substitution effect is negative as indifference curves are always downward sloping. However, the same does not apply to income effect as it depends on how consumption of a good changes with income. The income effect on a normal good is negative, so if its price decreases, the consumer's purchasing power or income increases.
An indifference curve is a set of all commodity bundles providing consumers with the same level of utility. The indifference curve is named so because the consumer would be indifferent between choosing any of these bundles. The indifference curves are not thick because of LNS.