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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 ...
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The set of all these efficient points that could be traded to is the contract curve. In the graph below, the initial endowments of the two people are at point X, on Kelvin's indifference curve K 1 and Jane's indifference curve J 1. From there they could agree to a mutually beneficial trade to anywhere in the lens formed by these indifference ...
Under the standard assumption of neoclassical economics that goods and services are continuously divisible, the marginal rates of substitution will be the same regardless of the direction of exchange, and will correspond to the slope of an indifference curve (more precisely, to the slope multiplied by −1) passing through the consumption bundle in question, at that point: mathematically, it ...
Whether indifference curves are primitive or derivable from utility functions; and; Whether indifference curves are convex. Assumptions are also made of a more technical nature, e.g. non-reversibility, saturation, etc. The pursuit of rigour is not always conducive to intelligibility. In this article indifference curves will be treated as primitive.
An example indifference curve is shown below: Each indifference curve is a set of points, each representing a combination of quantities of two goods or services, all of which combinations the consumer is equally satisfied with. The further a curve is from the origin, the greater is the level of utility.
An indifference graph, formed from a set of points on the real line by connecting pairs of points whose distance is at most one. In graph theory, a branch of mathematics, an indifference graph is an undirected graph constructed by assigning a real number to each vertex and connecting two vertices by an edge when their numbers are within one unit of each other. [1]
This is a gallery of curves used in mathematics, by Wikipedia page. See also list of curves. Algebraic curves. Rational curves. Degree 1. Line. Degree 2 Circle ...