INDIFFERENCE CURVE
(noun)Definitions
There is 1 meaning of the phrase
Indifference Curve.
Indifference Curve - as a noun
In microeconomic theory, a graph showing different bundles of goods between which a consumer is indifferent.
Example: "Since every (x , y) combination will have an indifference curve passing through it, we can add a third axis stretching upward from the bottom left corner of the figure measuring the degree to which the individual's preferences are satisfied, and visualize the infinitely many indifference curves as representing a smooth surface that rises as the consumption of commodities x and y increase."
Example Sentences
"The consumer's preferences can be represented by an indifference curve."
"Higher indifference curves represent greater levels of satisfaction for the consumer."
"A rational consumer will always choose a bundle that lies on a higher indifference curve."
"An indifference curve map represents a range of different indifference curves."
"The slope of an indifference curve represents the consumer's marginal rate of substitution."
