3.1.2 Indifference curves Indifference curves,which represent all combinations of goods and services that give the same level of satisfaction, are downward-sloping and cannot intersect one another. Clothing B : (Units per week) 40 ◆ : ·: : 30 : 20 : : Food An Indifference Curve 40 (Units per week)
3.1.2 Indifference curves ❑ Indifference curves, which represent all combinations of goods and services that give the same level of satisfaction, are downward-sloping and cannot intersect one another. Clothing Food (Units per week) (Units per week) U1 A D H E G B 40 20 30 40 An Indifference Curve
The indifference curve U that passes through market basket A shows all baskets that give the consumer the same level of satisfaction as does market basket A;these include baskets B and D. Our consumer prefers basket E,which lies above U1,to A,but prefers A to H or G,which lie below U1
The indifference curve U1 that passes through market basket A shows all baskets that give the consumer the same level of satisfaction as does market basket A; these include baskets B and D. Our consumer prefers basket E, which lies above U1 , to A, but prefers A to H or G, which lie below U1
3.1.3 Indifference Maps Consumer preferences can be completely described by a set of indifference curves known as an indifference map. An indifference map provides an ordinal ranking(序数排列) of all choices that the consumer might make
➢ Consumer preferences can be completely described by a set of indifference curves known as an indifference map. An indifference map provides an ordinal ranking (序数排列) of all choices that the consumer might make. 3.1.3 Indifference Maps
Clothing (Units per week) D B 02 U Food (Units per week)
D B A U1 U2 U3 Food (Units per week) Clothing (Units per week)
>An indifference map is a set of indifference curves that describes a person's preferences. Any market basket on indifference curve U3,such as basket A, is preferred to any basket on curve U2(e.g.,basket B),which in turn(依次，轮流)is preferred to any basket on U,such as basket D
➢ An indifference map is a set of indifference curves that describes a person’s preferences. Any market basket on indifference curve U3 , such as basket A, is preferred to any basket on curve U2 (e.g., basket B), which in turn(依次，轮流) is preferred to any basket on U1 , such as basket D