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An example of how indifference curves are obtained as the level curves of a utility function. A graph of indifference curves for several utility levels of an individual consumer is called an indifference map. Points yielding different utility levels are each associated with distinct indifference curves and these indifference curves on the ...
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.
Rational normal curve; Rose curve; Curves with genus 1 ... Indifference curve; J curve; Kuznets curve; ... Cardiac function curve; Dose–response curve;
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 ...
Perfect substitutes have a linear utility function and a constant marginal rate of substitution, see figure 3. [7] If goods X and Y are perfect substitutes, any different consumption bundle will result in the consumer obtaining the same utility level for all the points on the indifference curve (utility function). [8]
The normal distribution, also called the Gaussian or the bell curve. It is ubiquitous in nature and statistics due to the central limit theorem: every variable that can be modelled as a sum of many small independent, identically distributed variables with finite mean and variance is approximately normal. The normal-exponential-gamma distribution
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 example of preferences which are weakly monotonic but not strongly monotonic are those represented by a Leontief utility function. 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.