CONSUMER'S EQUILIBRIUM-INDIFFERENCE CURVE APPROACH

1. CONSUMER
EQUILIBRIUM
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Slide Copyright - econofun by Sanjay Jogai

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TWO APPROACH
UTILIY APPROACH
(Cardinal -exact units)
INDIFFERENCE CURVE APPROACH
(Ordinal-ranks)
INDIFFERENCE CURVE
A curve that shows the
various combinations of
two goods that gives same
level of satisfaction.
BUDGET LINE
Locus of all points
showing different
combinations of two
goods that a consumer can
actually buy at given
income and prices .

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4. 0
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0 1 2 3 4 5
INDIFFERENCE CURVE
Y-Values
No. of Apples
No.
of
Oranges
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11. BELIEVE IN YOURSELF
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 STAY SAFE, STAY HEALTHY
 ALWAYS USE MASK & SANITIZER
 AVOID CROWDED PLACES
 HANDWASH MANY TIMES A DAY
 VALUE TIME