Indifference curve :-
It is defined a curve that display combine of goods by which consumer gives same utility.Every point in this curve shows that consumer between two and every points indifferent gave him same utility.
Combinations products can be an Indifference curve in which assumed to give a increase in total utility.It is a model that compares demand of a good to another good.If a competitor increases the price of a good ,we will see type of impact on that particular good pn the basis of this Indifference curve,I can also increase the price like him i know that i will lose relativity in the market share.
Properties of Indifference curve :-
1.Downward sloping
2.convex to the origin
3.Higher the indifference curve
4.Tangent
Assumptions of Indifference curve :-
1. Two commodities
2.Non satiety
3.Ordinal utility
4. Dimisnishing marginal rate of substitution
5.Rational consumers
It is defined a curve that display combine of goods by which consumer gives same utility.Every point in this curve shows that consumer between two and every points indifferent gave him same utility.
Combinations products can be an Indifference curve in which assumed to give a increase in total utility.It is a model that compares demand of a good to another good.If a competitor increases the price of a good ,we will see type of impact on that particular good pn the basis of this Indifference curve,I can also increase the price like him i know that i will lose relativity in the market share.
Properties of Indifference curve :-
1.Downward sloping
2.convex to the origin
3.Higher the indifference curve
4.Tangent
Assumptions of Indifference curve :-
1. Two commodities
2.Non satiety
3.Ordinal utility
4. Dimisnishing marginal rate of substitution
5.Rational consumers
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