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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 ...
Download as PDF; Printable version; In other projects Wikidata item; Appearance. move to sidebar hide ... Indifference curve; J curve; Kuznets curve; Laffer curve ...
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 ...
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 ...
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.
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.
If you do not find a tangency point within the domain then the utility maximising indifference curve for the given budget constraint will be at an intersection between either the x or y axis (depending on whether the slope of the indifference curve is strictly greater than or less than the slope of the budget constraint) - this is a corner ...
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]