Preferences & indifference curves
All in One PlaceEverything you need for better marks in university, secondary, and primary classes. | Learn with EaseWe’ve mastered courses for WA, NSW, QLD, SA, and VIC, so you can study with confidence. | Instant and Unlimited HelpGet the best tips, walkthroughs, and practice questions. |
Make math click 🤔 and get better grades! 💯Join for Free
0/3
Intros
Lessons
- Preferences & Indifference Curves Overview:
- Preference Maps & Indifference Curves
- Graph of a person's preference
- Combination of goods where consumer is indifferent
- A family of indifference curves
- Marginal Rate of Substitution
- Rate of giving up good y for good x
- Slope of the indifference curve
- Steep indifference curve → MRS is high
- Flat indifference curve → MRS is low
- Diminishing marginal rate of substitution
- Degree of Substitutability
- How close are the substitutes?
- Different shapes of indifference curves
- Ordinary Goods
- Perfect Substitutes
- Perfect Complements
0/9
Examples
Lessons
- Understanding Indifference Curves & Marginal Rate of Substitution
Consider the following Indifference Curves: - Consider the following Indifference Curves:
- Understanding Ordinary Goods, Perfect Substitutes, & Perfect Complements
Draw indifference curves for left shoes and right shoes. - Draw indifference curves for instant coffee and coffee beans.
- Draw indifference curves for chocolate and vanilla.