Indifference Curves

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PowerPoint Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved. Indifference Curves

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Indifference Curves. The Budget Line. GF: M = $6, P X = P Y = $1 GF’: P X = $2 GF’’: P X = $0.67. Consumer Equilibrium. Derivation of the Consumer’s Demand Curve. Separation of the Substitution and Income Effect of a Price Change. - PowerPoint PPT Presentation

Transcript of Indifference Curves

Page 1: Indifference Curves

PowerPoint Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Indifference Curves

Page 2: Indifference Curves

PowerPoint Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

The Budget Line

GF: M = $6, PX = PY = $1

GF’: PX = $2

GF’’: PX = $0.67

Page 3: Indifference Curves

PowerPoint Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Consumer Equilibrium

Page 4: Indifference Curves

PowerPoint Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Derivation of the Consumer’s Demand Curve

Page 5: Indifference Curves

PowerPoint Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Separation of the Substitution and Income Effect of a Price Change


Indifference curves Workers care about whether their job is safe or risky Utility = f (w, ) where risk of injury Indifference curves reveal the trade.

Indifference curves Workers care about whether their job is safe or risky Utility = f (w, ) where risk of injury Indifference curves reveal the trade.

Consumer Choice Utility Consumer surplus Budget Constraints Indifference Curves Utility Consumer surplus Budget Constraints Indifference.

Consumer Choice Utility Consumer surplus Budget Constraints Indifference Curves Utility Consumer surplus Budget Constraints Indifference.

Tastes and Indifference Curves - Cengage · Tastes and Indifference Curves 40 5. The slope of anindifference curve — or the marginalrateofsubstitution — at a particular bundle

Tastes and Indifference Curves - Cengage · Tastes and Indifference Curves 40 5. The slope of anindifference curve — or the marginalrateofsubstitution — at a particular bundle

A primer on Consumer Choice Preferences, Indifference Curves and Utility

A primer on Consumer Choice Preferences, Indifference Curves and Utility

CHAPTER 3 OUTLINE... · 3.1 CONSUMER PREFERENCES Figure 3.2 Indifference Curves: Consumer preferences represented graphically indifference curve Curve representing all combinations

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Indifference Curves and Budget Constraints Indifference Curves and Budget Constraints Module 12 1.

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Indifference Curves Final

Indifference Curves Final

Homework:. Indifference Curves Definition: For any bundle a and a preference relation over bundles, the indifference curve through a is the set.

Homework:. Indifference Curves Definition: For any bundle a and a preference relation over bundles, the indifference curve through a is the set.

Indifference Curves and Utility Maximizationfinancelab.nctu.edu.tw/www/course/MicroEcon/6appendix.pdf · Indifference Curves and Utility Maximization ... When the indifference curve

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1 Introductory Microeconomics Indifference Curves.

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CHAPTER 3 OUTLINE...If indifference curves U 1 and U 2 intersect, one of the assumptions of consumer theory is violated. Indifference Curves Cannot Intersect 3.1 CONSUMER PREFERENCES

CHAPTER 3 OUTLINE...If indifference curves U 1 and U 2 intersect, one of the assumptions of consumer theory is violated. Indifference Curves Cannot Intersect 3.1 CONSUMER PREFERENCES

5.indifference curves

5.indifference curves

Indifference Curve Analysis 1. Develop indifference curves 2. Develop budget constraint 3. Some basic analysis: a. changes in prices; b. changes in income;

Indifference Curve Analysis 1. Develop indifference curves 2. Develop budget constraint 3. Some basic analysis: a. changes in prices; b. changes in income;

Indifference curves

Indifference curves

PPA 723: Managerial Economics Lecture 5: Indifference Curves.

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Marginal Utility and Indifference Curves

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The Theory of Consumer Choice - eskisehir.edu.trinsaat.eskisehir.edu.tr/erenb/IKT151/icerik/The Theory of... · 2019-10-18 · Indifference Curves •An indifference curve can be

The Theory of Consumer Choice - eskisehir.edu.trinsaat.eskisehir.edu.tr/erenb/IKT151/icerik/The Theory of... · 2019-10-18 · Indifference Curves •An indifference curve can be

Indifference Curves: An Example

Indifference Curves: An Example

Intermediate Microeconomicsbvankamm/Files/340...The slope of an indifference curveis called the marginal rate of substitution “MRS”. Indifference curves get “flatter” as you

Intermediate Microeconomicsbvankamm/Files/340...The slope of an indifference curveis called the marginal rate of substitution “MRS”. Indifference curves get “flatter” as you

Indifference Curves

Indifference Curves