1907 04-16 Indifference Curves for a Pair of Goods A Consumer's Indifference Curve Indifference Combinations Food Clothing 6 B c 2 D 4 112 Food Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 04-16 Indifference Curves for a Pair of Goods
04-17 0 Consumer Preferences ·Indifference Curves Indifference curves slope downward to the right. If it sloped upward it would violate the assumption that more of any commodity is preferred to less. Economics ECONOMICS MANAGEMENT SCHOOL.TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 04-17 Consumer Preferences • Indifference Curves – Indifference curves slope downward to the right. • If it sloped upward it would violate the assumption that more of any commodity is preferred to less
1907 04-18 Consumer Preferences ·Indifference Curves -Any market basket lying above and to the right of an indifference curve is preferred to any market basket that lies on the indifference curve. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 04-18 Consumer Preferences • Indifference Curves – Any market basket lying above and to the right of an indifference curve is preferred to any market basket that lies on the indifference curve
04-19 10 Consumer Preferences An indifference map is a set of indifference curves that describes a person's preferences for all combinations of two commodities. -Each indifference curve in the map shows the market baskets among which the person is indifferent. Economics ECONOMICS MANAGEMENT SCHOOL.TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 04-19 Consumer Preferences • An indifference map is a set of indifference curves that describes a person’s preferences for all combinations of two commodities. – Each indifference curve in the map shows the market baskets among which the person is indifferent
1907 04-20 A Family of Indifference Curves B D 0 6 Food Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 04-20 A Family of Indifference Curves