INDiFFERENCE CURVES

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INDiFFERENCE CURVES

On the basis of a scale of preferences. we can draw indifference curves. An indie Bancroft curve  represents satisfaction of a consumer from t\NO commodities. H is drawn on the assumption that for all possible points (or combinations of tile two commodities) n an in~difference curve, the total satisfaction (or utility) remain the same.

The consumer cannot tell how’ much satisfaction he secures from an apple or from a man hut he has got a  of preferences between these two commodities so as  be. able to compare the satisfaction derived from one basketball (If these two commodities. III other words, he knows what substitution of apples Or mangoes or mangoes fur a will leave him with  the same or equal satisfaction. Thus, our has in his mind all indifference schedule.This schedule has several combinations or apples and mangoes which he derives the name or equal toil satisfaction. Or we can various combinations arc equally prefer red or desired by him.

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INDiFFERENCE CURVES