Indifference Curves: Use & Impact in Economics
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Indifference Curves: Use & Impact in Economics
In economics, indifference curves show which goods in the marketplace bring equal satisfaction to consumers, leaving them indifferent to which goods they purchase. Explore the definition, learn about their use and impact in economics, and review how they work.
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Graph a typical indifference curve for the following utility functions and determine whether they have convex indifference curves (that is, whether the M R S declines as x increases). a. U(x, y)=3 x y b. U(x, y)=√(x ·y) c. U(x, y)=√(x) y d . U(x, y)=√(x^2-y^2) e. U(x, y)=(x y)/(x y) | Numerade
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