Indifference Curve & Consumer Equilibrium with indifference Curve

Posted: November 15, 2012 in Education

Indifference Curve & Consumer Equilibrium with indifference Curve

Indifference Curve:
“A curve which represent various combination of two goods yielding the same level of satisfaction.”

Consumer Equilibrium with indifference Curve:

Schedule

Baskets Good Y Good X
A 10 2
B 8 4
C 6 6
D 4 8
E 2 10

Diagram:


On the point where utility is max this point is Consumer Equilibrium.

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