INDIFFERENCE ANALYSIS Indifference curvesIndifference curves –constructing an indifference curve –the shape of an indifference curve –diminishing marginal.
Questions 1 & 2 Individual A Perfect 1:1 substitutes x-axis: one particular good – p 1 = 0.8 y-axis: all other goods – money, given that p 2 = 1 M = 120.
Chapter 3 McGraw-Hill/IrwinCopyright © 2010 The McGraw-Hill Companies, Inc. All rights reserved.
Lecture 8 Consumption and Consumer Society. Consumer behavior: The marketing view Why do consumers want what they want? Why do they buy what they buy?
Indifference Curves Locus of points representing different bundles of two goods, each of which yields the same level of total utility. It is a graphical.
PRESAGE-CTE Seminar MED Programme MED Programme Paris, 22 nd September 2009.
1 Chapter 4 - Consumer Choice People can’t have everything; their choices are always constrained by factors such as time and money. In this chapter we.
Chapter 5: Theory of Consumer Behavior McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
INDIFFERENCE CURVES AND UTILITY MAXIMIZATION Indifference curve – A curve that shows combinations of goods which gives the same level of satisfaction to.
