WebAn indifference curve is a graph that shows a combination of two goods that give a consumer equal satisfaction and utility, thereby making the consumer indifferent. Indifference curves are heuristic devices used in … WebDec 29, 2024 · Marginal rate of substitution (MRS) the the willingness of a consumer toward replace one good for another, as long as to new great is also satisfying.

Can the indifference curve be a straight line? - Quora

WebFirstly, in the indifference curve technique, utility cannot be measured. In the case of an isoquant, the product can be precisely measured in physical units. Secondly, in the case of indifference curves, we can talk only about higher or lower levels of utility. In the case of isoquants, we can say by how much IQ 2 actually exceeds IQ 1 (figure 2). WebAn indifference curve is a curve that represents all the combinations of goods that give the same satisfaction to the consumer. Since all the combinations give the same amount of satisfaction, the consumer … sm cyber

7.3 Indifference Curve Analysis: An Alternative Approach to ...

WebHigher indifference curves represent a greater level of utility than lower ones. In Figure 1, indifference curve Ul can be thought of as a “low” level of utility, while Um is a “medium” level of utility and Uh is a “high” level of … WebJun 9, 2024 · If the goods are perfect substitutes for each other, the indifference curve will be a straight line sloping downward. MRS of this shape of the indifference curves is … WebLikewise, indifference curve cannot be a straight-line, except when goods are perfect substitutes. A straight-line indifference curve would mean that MRS xy remains constant as more units of X are acquired in place of Y. As shown in Fig. 8.9 that on a straight-line indifference curve the amount of Y which the consumer is willing to give up for ... sm cricket great oakley