Indifference Curve

In microeconomic theory, an indifference curve is a graph showing different bundles of goods between which a consumer is indifferent. That is, at each point on the curve, the consumer has no preference for one bundle over another. One can equivalently refer to each point on the indifference curve as rendering the same level of utility (satisfaction) for the consumer. Utility is then a device to represent preferences rather than something from which preferences come. The main use of indifference curves is in the representation of potentially observable demand patterns for individual consumers over commodity bundles.

There are infinitely many indifference curves: one passes through each combination. A collection of (selected) indifference curves, illustrated graphically, is referred to as an indifference map.

Read more about Indifference Curve:  History, Map and Properties of Indifference Curves, Assumptions of Consumer Preference Theory, Preference Relations and Utility

Other articles related to "indifference curve, indifference curves, indifference":

Indifference Curve - Preference Relations and Utility - Examples - Biology
... As used in Biology, the indifference curve is a model for how animals 'decide' whether to perform a particular behavior, based on changes in two variables which can increase in intensity, one ... The indifference curve is drawn to predict the animal's behavior at various levels of risk and food availability ...
Consumer Theory - Model Setup
... Further information Indifference curve and Budget constraint Economists' modern solution to the problem of mapping consumer choices is indifference curve analysis ... For an individual, indifference curves and an assumption of constant prices and a fixed income in a two-good world will give the following diagram ... The consumer will choose the indifference curve with the highest utility that is within his budget constraint ...
Harry Markowitz Model - Choosing The Best Portfolio
... Figure 2 shows the risk-return indifference curve for the investors ... Indifference curves C1, C2 and C3 are shown ... Each of the different points on a particular indifference curve shows a different combination of risk and return, which provide the same satisfaction to the ...
Marginal Utility - History - Reformulation
... work Mathematical Psychics, Francis Ysidro Edgeworth presented the indifference curve, deriving its properties from marginalist theory which assumed utility to be a differentiable function of quantified ... work attempted to generalize to the indifference-curve formulations of utility and marginal utility in avoiding unobservable measures of utility ... derived a theory of consumer choice solely from properties of indifference curves ...
Bergson–Samuelson Social Welfare Function
... Nor are they inferable from the shapes of standard indifference curves ... to respective quantities of commodities for the two-dimensional commodity space of the indifference-curve surface The Welfare function is analogous to the indifference-curve map ...

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