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Indifference Curve Analysis PPT
- 1. INDIFFERENCE CURVE ANALYSIS : ORDINAL UTILITY APPROACH
- 5. Indifference Schedule: 5 5 E 4 6 D 3 8 C 2 11 B 1 15 A Mangoes Apples Combinations
- 6. Indifference curve IC shows all possible combinations of apples and mangoes between which a person is indifferent. Point A shows consumption bundle consisting of 15 apples and one mango. Moving from point A to Point B, we are willing to give up 4 apples to get a second mango (total utility is the same at points A and B).
- 7. Indifference Map : A graph showing a whole set of indifference curves is called an indifference map. All points on the same curve give equal level of satisfaction, but each point on higher curve gives higher level of satisfaction.