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INDIFFERENCE CURVE

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Indifference Curve The points can be covered under this topic are given below: Definition Assumption of Indifference Curve Properties of Indifference Curve Definition The indifference curve is the curve which shows all the combination of two goods from which the consumer receive equal level of satisfaction. At a different combination on the same curve, the consumer has no preference for one combination of bundle of goods. In other words, an indifference curve is the locus of various points that shows different combination of two goods that provide the same utility to consumer. The economists are used the principle of indifference curve in the study of welfare economics. Assumption of Indifference Curve 1. The consumer always acts rationally to get maximum satisfaction. 2. IC shows only the combination of two goods. 3. The consumer have a complete information about the market prices. 4. The prices are always remains constant. Properties o...
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UTILITY

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Utility ???? Introduction In this chapter, we have to learn the following concepts: (A) Utility::: (A.1) Total Utility (A.2) Marginal Utility (A.3) Maximize Utility (B) Law of Diminishing Marginal Utility (A) The concept of Utility Why do you buy goods and services? This should be because they provide you satisfaction - you feel better because you bought them. The economist is called this satisfaction utility. In economics, utility on a set of goods and services is a priority; It represents a well-satisfied satisfaction by the consumer.The concept of rational choice theory in economics and game theory is an important basis: Since no one can directly measure profit, satisfaction or happiness from good or service, economists can demonstrate and measure utility in terms of measurable economic options. It is difficult to measure the utility of the consumer, but it can be indirectly determined with consumer...
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Introduction to Economics

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'Economics' ???? Economics is a science to analyze the production, distribution, and consumption of goods and services. In other words, what choices people make and how they make them while shopping. Economics is basically analyzing the lack of resources(Scarcity) and how to allocate it among the various consumers spread across the globe. The study of economics can be sub-classified in microeconomics and macroeconomics: Microeconomics is the study of economics at a person or business level; How different people or businessmen behaved in deficiencies and governmental interventions include the concepts in microeconomics such as supply and demand, price elasticity, quantity demand and quantity supply. Macroeconomics is the study of the performance and structure of the whole economy rather than individual markets. Macroeconomics includes concepts such as inflation, international trade, unemployment and national consumption and production. Principles Of...
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