INDIFFERENCE CURVE :
An indifference curve is a graph that shows a combination of two goods that give a consumer equal satisfaction and utility, thereby making the combination different.
> The slope of the indifference curve is called the marginal rate of substitution , which declines as the quantity of X increases relative to the quantity of Y.
In economics, the marginal rate of substitution (MRS) is the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility. At equilibrium consumption levels.
FOR EXAMPLE :
In a summer day , i went to purchase mango in a market but i saw their grapes so i bought 1 kg mango and 1 kg grapes because i was to buy 2 kg mango but suddenly i mind change and selected another fruits(grapes), which gives me the same satisfaction .
An indifference curve is a graph that shows a combination of two goods that give a consumer equal satisfaction and utility, thereby making the combination different.
> The slope of the indifference curve is called the marginal rate of substitution , which declines as the quantity of X increases relative to the quantity of Y.
In economics, the marginal rate of substitution (MRS) is the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility. At equilibrium consumption levels.
FOR EXAMPLE :
In a summer day , i went to purchase mango in a market but i saw their grapes so i bought 1 kg mango and 1 kg grapes because i was to buy 2 kg mango but suddenly i mind change and selected another fruits(grapes), which gives me the same satisfaction .
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