1) Use the graph below to explain why, if all assumptions about preferences are met, thick indifference curves are not possible. Hint: take two points (bundles) on the graph. >XI
The indifference curve of the consumer shows all the different combinations of two goods that provide the same level of total utility or satisfaction to the consumer. Total utility refers to the total amount of satisfaction received by the consumer from the consumption of a given amount of two commodities.
The slope of the indifference curve shows the rate at which the consumer is willing to substitute the consumption of one good in place of one another so that his total utility remains constant. The slope of the indifference curve is equal to the ratio of the marginal utilities of the two goods the consumer is consuming. The marginal utility of a good is defined as the extra utility the consumer is able to receive by consuming one more unit of a good.
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