Utility Functions Indiff Curves An indifference curve contains equally preferred bundles. Equal preference same utility level Therefore, all bundles in an indifference curve have the same utility level
Utility Functions & Indiff. Curves An indifference curve contains equally preferred bundles. Equal preference same utility level. Therefore, all bundles in an indifference curve have the same utility level
Utility Functions Indiff. Curves So the bundles (4, 1 )and (2, 2 are in the indiff curve with utility level U=4 But the bundle(2, 3 )is in the indiff curve with utility level U=6 On an indifference curve diagram, this preference information looks as follows:
Utility Functions & Indiff. Curves So the bundles (4,1) and (2,2) are in the indiff. curve with utility level U But the bundle (2,3) is in the indiff. curve with utility level U 6. On an indifference curve diagram, this preference information looks as follows:
Utility Functions Indiff Curves 2 (2,3)x(2,2)~(4,1) U≡6 2 4 X
Utility Functions & Indiff. Curves U 6 U 4 (2,3) (2,2) ~ (4,1) x1 x2 p
Utility Functions Indiff. Curves Comparing more bundles will create a larger collection of all indifference curves and a better description of the consumer's preferences
Utility Functions & Indiff. Curves Comparing more bundles will create a larger collection of all indifference curves and a better description of the consumer’s preferences
Utility Functions Indiff. Curves 2 U≡6 U≡4 U≡2 2 4 X
Utility Functions & Indiff. Curves U 6 U 4 U 2 x1 x2