Indifference curve analysis | CUET 2023 Micro economics. 25 marks fixed | Don't miss this Topic

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Ic curve combination of two goods giving equal level of satisfaction Characteristics Ic curve convex to the origin Ic curve shape convex due to Mrs decline Ic curve never intersect each other Ic curve never touch axis Higher the ic curve higher level of satisfaction There may be infinite ic curves Collection showing different ic curves known as indifference map Mrs always decrease due to law of dmu Formula = deltay loss/delta x gain Mrsx=Px/Py X+px+y+py X =no of commodities P price of commodities Y=no of commodities Thankyou sir 😇🙏🏻

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Feature of indifference curve 1) slope downward to right or convex to origin 2) all the combination on a ic give equal level of satisfaction 3)Ic on right side represent higher level of satisfaction and vice verca and the new term learn from this monotonic

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budget line also called price line everything inside the budget line is known is attainable good and outside the budget line is known is unattainable good eq= y= no. of cx *price of x+ no.of y*price of y

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feature Downward sloping to right Equal satisfaction Right ;- more satisfaction

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[@TheMatrix-q1p]

ic curve is downward sloping to right and convex to origin two ic never intersect each other points or combination on ic is equal to each ic can be infinite right shift in ic give more satisfaction and left side ic gives less satisfaction edge of ic never touch the axis mrs = chnge in y /change in x

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Indifference curve approach modern approach by proff Hicks hicksation curve

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shift and rotation in ic shift because of change in income of ch. in price of both comodity rotation due to change in price of only one comodity

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