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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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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.
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.
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 ...
If an agent has monotone preferences which means the marginal rate of substitution of the agent's indifference curve is positive. Given two products X and Y. If the agent is strictly preferred to X, it can get the equivalent statement that X is weakly preferred to Y and Y is not weakly preferred to X.
When the slope of the indifference curve is greater than the slope of the budget line, the consumer is willing to give up more of good 1 for a unit of good 2 than is required by the market. Thus, it follows that if the slope of the indifference curve is strictly greater than the slope of the budget line: