INDIFFERENCE CURVE

by • 24/06/2011 • B.COM PART 1 EconomicsComments (0)888

An indifference curve may be defined as:

“A graphic representation of different combination of two goods which yield the same level of satisfaction to the consumer.”

Graphical Representation:

Combination

Commodity x Commodity y
A 1 7
B 2

4

C

3

2

D 4

1

In above example all the four combinations provide same level of satisfaction to consumer therefore consumer becomes indifference as to which combination he should choose. This tendency when shown with the help of a graph is known as indifference curve. On one IC whatever may be the point level of satisfaction will be the same.

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