SlideShare a Scribd company logo
INDIFFERENCE
CURVE PRESENTED BY:-
DR. JYOTI KHARE
ASSOCIATE PROFESSOR
GOVT. P. G. COLLEGE
MALDEVTA, (RAIPUR)
DEHRADUN
Indifference Curve
 New analysis/Substitution analysis
 Preference approach to consumer behaviour
 U is inherent and subjective
 Associated with the name of J. R. Hicks and
R.J.D Allen
 Content with the fact of the consumer’s
Preferences.
ASSUMPTIONS…….
 Consumer is not interested in one commodity at a particular time
 The consumer while spending money on goods act in a rational income
 (2) There are two goods X and Y.
 (3) The consumer possesses complete information about the prices of the goods in the
market.
 4) The prices of the two goods are given.
 (5) The consumer’s tastes, habits and income remain the same throughout the analysis.
 (6) He prefers more of X to less of У or more of Y to less of X.
 (7) An indifference curve is negatively inclined sloping downward.
Schedule
PROPERTIES OF INDIEERENCE CURVE
 Indifference curve slopes downward from left to right.
 Indifference curve are convex to origin.
 Two Indifference curve can not touch or intersect
each other.
 Higher Indifference curve represents higher level of
satisfaction.
 Indifference curve need not to be parallel to each
other. ( Due to Ordinal, marginal rate of 2 comd. Not
same, IC – no width)
Indifference Map
(Collection of indifference curves and represents a higher level of satisfaction)
 The Indifference Map is the graphical representation of two or more indifference
curves showing the several combinations of different quantities of commodities,
which consumer consumes, given his income and the market price of goods and
services
Budget line
 A budget line shows the combinations of two products that a consumer can afford to buy
with a given income – using all of their available budget.
 Let us understand the concept of Budget line with the help of an example: Suppose, a
consumer has an income of 2000. He wants to spend it on two commodities: X and Y,
where each is priced at 1000. Now, the consumer has three options to spend all of his
income: 1. Buy 2 units of X,
 2. Buy 2 units of Y,
 or 3. ONE UNIT OF BOTH
BUDGET LINE
 Budget line should be tangent to the indifference curve
 Consumer's equilibrium is based on the assumption that the income of a consumer is
constant and that he spends his entire income on purchasing two goods whose prices are
given. Budget line should be tangent to the indifference curve
THANK YOU

More Related Content

What's hot

Monopolistic competition
Monopolistic competitionMonopolistic competition
Monopolistic competition
Musthak Manrah
 
COBB DOUGLAS PRODUCTION FUNCTION THEORY
COBB DOUGLAS PRODUCTION FUNCTION THEORYCOBB DOUGLAS PRODUCTION FUNCTION THEORY
COBB DOUGLAS PRODUCTION FUNCTION THEORY
Gourav Dholwal
 
Return to scale
Return to scaleReturn to scale
Return to scale
Lokesh Parihar
 
The Budget Line
The Budget LineThe Budget Line
The Budget Line
tutor2u
 
Concept of utility
Concept of utilityConcept of utility
Concept of utility
Sajan N. Thomas
 
Law of demand
Law of demandLaw of demand
Law of demand
Ankit Porwal
 
Consumer equilibrium and demand
Consumer equilibrium and demandConsumer equilibrium and demand
Consumer equilibrium and demand
madan kumar
 
Elasticity Of Demand
Elasticity Of DemandElasticity Of Demand
Elasticity Of Demand
bhawnabhatnagar
 
Production function ppt in economics
Production function ppt in economicsProduction function ppt in economics
Production function ppt in economics
Mansi Tyagi
 
Law of variable proportion
Law of variable proportionLaw of variable proportion
Law of variable proportion
Dhrubajyoti Sadhukhan
 
Price discrimination
Price discriminationPrice discrimination
Price discrimination
Vidhya Kannan
 
DEMAND ,TYPES AND IT'S FUNCTIONS
DEMAND ,TYPES AND IT'S FUNCTIONSDEMAND ,TYPES AND IT'S FUNCTIONS
DEMAND ,TYPES AND IT'S FUNCTIONS
Mayank Lobhane
 
Law of demand
Law of demand Law of demand
Law of demand
Shompa Nandi
 
Consumer preference and choice(production theory)
Consumer preference and choice(production theory)Consumer preference and choice(production theory)
Consumer preference and choice(production theory)
Ujjwal 'Shanu'
 
Perfect Competitive Market
Perfect Competitive Market Perfect Competitive Market
Perfect Competitive Market
SIASDEECONOMICA
 
Utility analysis ppt
Utility analysis pptUtility analysis ppt
Utility analysis ppt
Meenaiah Akkenapally Meenaiah
 
Monopoly market
Monopoly marketMonopoly market
Monopoly market
Dr. Shweta Uppadhyay
 
Oligopoly
OligopolyOligopoly
Oligopoly
sasidharkv
 
Cardinal utility analysis
Cardinal utility analysisCardinal utility analysis
Cardinal utility analysis
SIASDEECONOMICA
 
Demand Analysis
Demand  AnalysisDemand  Analysis
Demand Analysis
Sahil Mahajan
 

What's hot (20)

Monopolistic competition
Monopolistic competitionMonopolistic competition
Monopolistic competition
 
COBB DOUGLAS PRODUCTION FUNCTION THEORY
COBB DOUGLAS PRODUCTION FUNCTION THEORYCOBB DOUGLAS PRODUCTION FUNCTION THEORY
COBB DOUGLAS PRODUCTION FUNCTION THEORY
 
Return to scale
Return to scaleReturn to scale
Return to scale
 
The Budget Line
The Budget LineThe Budget Line
The Budget Line
 
Concept of utility
Concept of utilityConcept of utility
Concept of utility
 
Law of demand
Law of demandLaw of demand
Law of demand
 
Consumer equilibrium and demand
Consumer equilibrium and demandConsumer equilibrium and demand
Consumer equilibrium and demand
 
Elasticity Of Demand
Elasticity Of DemandElasticity Of Demand
Elasticity Of Demand
 
Production function ppt in economics
Production function ppt in economicsProduction function ppt in economics
Production function ppt in economics
 
Law of variable proportion
Law of variable proportionLaw of variable proportion
Law of variable proportion
 
Price discrimination
Price discriminationPrice discrimination
Price discrimination
 
DEMAND ,TYPES AND IT'S FUNCTIONS
DEMAND ,TYPES AND IT'S FUNCTIONSDEMAND ,TYPES AND IT'S FUNCTIONS
DEMAND ,TYPES AND IT'S FUNCTIONS
 
Law of demand
Law of demand Law of demand
Law of demand
 
Consumer preference and choice(production theory)
Consumer preference and choice(production theory)Consumer preference and choice(production theory)
Consumer preference and choice(production theory)
 
Perfect Competitive Market
Perfect Competitive Market Perfect Competitive Market
Perfect Competitive Market
 
Utility analysis ppt
Utility analysis pptUtility analysis ppt
Utility analysis ppt
 
Monopoly market
Monopoly marketMonopoly market
Monopoly market
 
Oligopoly
OligopolyOligopoly
Oligopoly
 
Cardinal utility analysis
Cardinal utility analysisCardinal utility analysis
Cardinal utility analysis
 
Demand Analysis
Demand  AnalysisDemand  Analysis
Demand Analysis
 

Similar to Indifference curve and budget line

CONSUMER BEHAVIOR.pptx
CONSUMER BEHAVIOR.pptxCONSUMER BEHAVIOR.pptx
CONSUMER BEHAVIOR.pptx
BejameeLobo
 
theoryofconsumerbehavior-151109140500-lva1-app6891 (1) (1).pptx
theoryofconsumerbehavior-151109140500-lva1-app6891 (1) (1).pptxtheoryofconsumerbehavior-151109140500-lva1-app6891 (1) (1).pptx
theoryofconsumerbehavior-151109140500-lva1-app6891 (1) (1).pptx
sadiqfarhan2
 
Indifference curves
Indifference curvesIndifference curves
Indifference curves
Mahak Arora
 
Indifference Curve
Indifference CurveIndifference Curve
Indifference Curve
Nancy142
 
Theory of Consumer Choice Lecture Notes (Economics)
Theory of Consumer Choice Lecture Notes (Economics)Theory of Consumer Choice Lecture Notes (Economics)
Theory of Consumer Choice Lecture Notes (Economics)
FellowBuddy.com
 
Consumer surplus
Consumer surplus Consumer surplus
Consumer surplus
DAVIS THOMAS
 
CONSUMERS_EQUILIBRIUM_AND_DEMAND.pptx
CONSUMERS_EQUILIBRIUM_AND_DEMAND.pptxCONSUMERS_EQUILIBRIUM_AND_DEMAND.pptx
CONSUMERS_EQUILIBRIUM_AND_DEMAND.pptx
OK0000670639
 
Indifference curve analysis
Indifference curve analysisIndifference curve analysis
Indifference curve analysis
Bikash Kumar
 
Consumer prefrence and choice
Consumer prefrence and choiceConsumer prefrence and choice
Consumer prefrence and choice
Bhupendra Thakur
 
Micro Theory of Consumer Behavior and Demand.pptx
Micro Theory of Consumer Behavior and Demand.pptxMicro Theory of Consumer Behavior and Demand.pptx
Micro Theory of Consumer Behavior and Demand.pptx
Jaafar47
 
Theory of Consumer Behaviour Class 12 Economics
Theory of Consumer Behaviour Class 12 EconomicsTheory of Consumer Behaviour Class 12 Economics
Theory of Consumer Behaviour Class 12 Economics
AnjaliKaur3
 
Eco chapt 3.pptx
Eco chapt 3.pptxEco chapt 3.pptx
Eco chapt 3.pptx
FraolUmeta
 
Theory of consumer behavior
Theory of consumer behaviorTheory of consumer behavior
Theory of consumer behavior
Priyanka31997
 
consumerbehaviour-140220041503-phpapp01 (1).pptx
consumerbehaviour-140220041503-phpapp01 (1).pptxconsumerbehaviour-140220041503-phpapp01 (1).pptx
consumerbehaviour-140220041503-phpapp01 (1).pptx
sadiqfarhan2
 
Ayushi Agrawal .pptx
Ayushi Agrawal .pptxAyushi Agrawal .pptx
Ayushi Agrawal .pptx
ayushiagrawal202926
 
Consumer Behaviour_472c35cf2e5ef8ac30294bf8f4ebd6f5.pptx
Consumer Behaviour_472c35cf2e5ef8ac30294bf8f4ebd6f5.pptxConsumer Behaviour_472c35cf2e5ef8ac30294bf8f4ebd6f5.pptx
Consumer Behaviour_472c35cf2e5ef8ac30294bf8f4ebd6f5.pptx
NithinMathewJoseMBA2
 
Consumer behavior
Consumer behaviorConsumer behavior
Consumer behavior
Sandeep Kumar
 
Indifference Curve Approach.pptx
Indifference Curve Approach.pptxIndifference Curve Approach.pptx
Indifference Curve Approach.pptx
GoluKumar70
 
Theory Of Consumer Behavior
Theory Of Consumer BehaviorTheory Of Consumer Behavior
Theory Of Consumer Behavior
Kishore Raveendran
 
Consumer Behaviour And Consumer Equilibrium
Consumer Behaviour And Consumer Equilibrium Consumer Behaviour And Consumer Equilibrium
Consumer Behaviour And Consumer Equilibrium
ShrutiJain330
 

Similar to Indifference curve and budget line (20)

CONSUMER BEHAVIOR.pptx
CONSUMER BEHAVIOR.pptxCONSUMER BEHAVIOR.pptx
CONSUMER BEHAVIOR.pptx
 
theoryofconsumerbehavior-151109140500-lva1-app6891 (1) (1).pptx
theoryofconsumerbehavior-151109140500-lva1-app6891 (1) (1).pptxtheoryofconsumerbehavior-151109140500-lva1-app6891 (1) (1).pptx
theoryofconsumerbehavior-151109140500-lva1-app6891 (1) (1).pptx
 
Indifference curves
Indifference curvesIndifference curves
Indifference curves
 
Indifference Curve
Indifference CurveIndifference Curve
Indifference Curve
 
Theory of Consumer Choice Lecture Notes (Economics)
Theory of Consumer Choice Lecture Notes (Economics)Theory of Consumer Choice Lecture Notes (Economics)
Theory of Consumer Choice Lecture Notes (Economics)
 
Consumer surplus
Consumer surplus Consumer surplus
Consumer surplus
 
CONSUMERS_EQUILIBRIUM_AND_DEMAND.pptx
CONSUMERS_EQUILIBRIUM_AND_DEMAND.pptxCONSUMERS_EQUILIBRIUM_AND_DEMAND.pptx
CONSUMERS_EQUILIBRIUM_AND_DEMAND.pptx
 
Indifference curve analysis
Indifference curve analysisIndifference curve analysis
Indifference curve analysis
 
Consumer prefrence and choice
Consumer prefrence and choiceConsumer prefrence and choice
Consumer prefrence and choice
 
Micro Theory of Consumer Behavior and Demand.pptx
Micro Theory of Consumer Behavior and Demand.pptxMicro Theory of Consumer Behavior and Demand.pptx
Micro Theory of Consumer Behavior and Demand.pptx
 
Theory of Consumer Behaviour Class 12 Economics
Theory of Consumer Behaviour Class 12 EconomicsTheory of Consumer Behaviour Class 12 Economics
Theory of Consumer Behaviour Class 12 Economics
 
Eco chapt 3.pptx
Eco chapt 3.pptxEco chapt 3.pptx
Eco chapt 3.pptx
 
Theory of consumer behavior
Theory of consumer behaviorTheory of consumer behavior
Theory of consumer behavior
 
consumerbehaviour-140220041503-phpapp01 (1).pptx
consumerbehaviour-140220041503-phpapp01 (1).pptxconsumerbehaviour-140220041503-phpapp01 (1).pptx
consumerbehaviour-140220041503-phpapp01 (1).pptx
 
Ayushi Agrawal .pptx
Ayushi Agrawal .pptxAyushi Agrawal .pptx
Ayushi Agrawal .pptx
 
Consumer Behaviour_472c35cf2e5ef8ac30294bf8f4ebd6f5.pptx
Consumer Behaviour_472c35cf2e5ef8ac30294bf8f4ebd6f5.pptxConsumer Behaviour_472c35cf2e5ef8ac30294bf8f4ebd6f5.pptx
Consumer Behaviour_472c35cf2e5ef8ac30294bf8f4ebd6f5.pptx
 
Consumer behavior
Consumer behaviorConsumer behavior
Consumer behavior
 
Indifference Curve Approach.pptx
Indifference Curve Approach.pptxIndifference Curve Approach.pptx
Indifference Curve Approach.pptx
 
Theory Of Consumer Behavior
Theory Of Consumer BehaviorTheory Of Consumer Behavior
Theory Of Consumer Behavior
 
Consumer Behaviour And Consumer Equilibrium
Consumer Behaviour And Consumer Equilibrium Consumer Behaviour And Consumer Equilibrium
Consumer Behaviour And Consumer Equilibrium
 

More from Govt. P. G. College, Maldevta (Raipur), Dehradun

UNCTAD
UNCTADUNCTAD
Foreign direct investment in India
Foreign direct investment in IndiaForeign direct investment in India
Foreign direct investment in India
Govt. P. G. College, Maldevta (Raipur), Dehradun
 
PP curve/ PP frontier
PP curve/ PP frontierPP curve/ PP frontier
Economies and Diseconomies of scale
Economies and Diseconomies of scaleEconomies and Diseconomies of scale
Economies and Diseconomies of scale
Govt. P. G. College, Maldevta (Raipur), Dehradun
 
Leasing & Hire purchase
Leasing & Hire purchaseLeasing & Hire purchase
Balance of payment
Balance of paymentBalance of payment
Profit and it's theories
Profit and it's theoriesProfit and it's theories
Promotion
Promotion Promotion
Valuation of goodwill
Valuation of goodwill Valuation of goodwill
Theories of wages
Theories of wages Theories of wages
Wages meaning & its types
Wages  meaning & its typesWages  meaning & its types
Capital gain prac problem
Capital gain  prac problemCapital gain  prac problem
Capital gain (types of capital assets)
Capital gain (types of capital assets)Capital gain (types of capital assets)
Capital gain (types of capital assets)
Govt. P. G. College, Maldevta (Raipur), Dehradun
 
Induction
Induction Induction
GOODWILL - CONCEPT & ITS TYPES
GOODWILL - CONCEPT & ITS TYPESGOODWILL - CONCEPT & ITS TYPES
GOODWILL - CONCEPT & ITS TYPES
Govt. P. G. College, Maldevta (Raipur), Dehradun
 
Counter trade
Counter tradeCounter trade
Theories of profit(3)
Theories of profit(3)Theories of profit(3)
Training- types & methods
Training- types & methods Training- types & methods
Memo & Circular
Memo  & CircularMemo  & Circular
General agreement tariffs & trade (GATT) converted
General agreement tariffs & trade (GATT) convertedGeneral agreement tariffs & trade (GATT) converted
General agreement tariffs & trade (GATT) converted
Govt. P. G. College, Maldevta (Raipur), Dehradun
 

More from Govt. P. G. College, Maldevta (Raipur), Dehradun (20)

UNCTAD
UNCTADUNCTAD
UNCTAD
 
Foreign direct investment in India
Foreign direct investment in IndiaForeign direct investment in India
Foreign direct investment in India
 
PP curve/ PP frontier
PP curve/ PP frontierPP curve/ PP frontier
PP curve/ PP frontier
 
Economies and Diseconomies of scale
Economies and Diseconomies of scaleEconomies and Diseconomies of scale
Economies and Diseconomies of scale
 
Leasing & Hire purchase
Leasing & Hire purchaseLeasing & Hire purchase
Leasing & Hire purchase
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
Profit and it's theories
Profit and it's theoriesProfit and it's theories
Profit and it's theories
 
Promotion
Promotion Promotion
Promotion
 
Valuation of goodwill
Valuation of goodwill Valuation of goodwill
Valuation of goodwill
 
Theories of wages
Theories of wages Theories of wages
Theories of wages
 
Wages meaning & its types
Wages  meaning & its typesWages  meaning & its types
Wages meaning & its types
 
Capital gain prac problem
Capital gain  prac problemCapital gain  prac problem
Capital gain prac problem
 
Capital gain (types of capital assets)
Capital gain (types of capital assets)Capital gain (types of capital assets)
Capital gain (types of capital assets)
 
Induction
Induction Induction
Induction
 
GOODWILL - CONCEPT & ITS TYPES
GOODWILL - CONCEPT & ITS TYPESGOODWILL - CONCEPT & ITS TYPES
GOODWILL - CONCEPT & ITS TYPES
 
Counter trade
Counter tradeCounter trade
Counter trade
 
Theories of profit(3)
Theories of profit(3)Theories of profit(3)
Theories of profit(3)
 
Training- types & methods
Training- types & methods Training- types & methods
Training- types & methods
 
Memo & Circular
Memo  & CircularMemo  & Circular
Memo & Circular
 
General agreement tariffs & trade (GATT) converted
General agreement tariffs & trade (GATT) convertedGeneral agreement tariffs & trade (GATT) converted
General agreement tariffs & trade (GATT) converted
 

Recently uploaded

在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
5spllj1l
 
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
AntoniaOwensDetwiler
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
nimaruinazawa258
 
做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样
做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样
做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样
2g3om49r
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
rlo9fxi
 
FCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptxFCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptx
nalamynandan
 
What's a worker’s market? Job quality and labour market tightness
What's a worker’s market? Job quality and labour market tightnessWhat's a worker’s market? Job quality and labour market tightness
What's a worker’s market? Job quality and labour market tightness
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla FincorpWho Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
beulahfernandes8
 
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
28xo7hf
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
ResolutionFoundation
 
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
5spllj1l
 
Fabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio ProblemFabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio Problem
Majid Iqbal
 
Using Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trendsUsing Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trends
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
Detailed power point presentation on compound interest and how it is calculated
Detailed power point presentation on compound interest  and how it is calculatedDetailed power point presentation on compound interest  and how it is calculated
Detailed power point presentation on compound interest and how it is calculated
KishanChaudhary23
 
Upanishads summary with explanations of each upnishad
Upanishads summary with explanations of each upnishadUpanishads summary with explanations of each upnishad
Upanishads summary with explanations of each upnishad
ajaykumarxoxo04
 
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
qntjwn68
 
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
yeuwffu
 
Enhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial InstitutionsEnhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial Institutions
shruti1menon2
 
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
Commonwealth
 

Recently uploaded (20)

在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
 
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
 
做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样
做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样
做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
 
FCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptxFCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptx
 
What's a worker’s market? Job quality and labour market tightness
What's a worker’s market? Job quality and labour market tightnessWhat's a worker’s market? Job quality and labour market tightness
What's a worker’s market? Job quality and labour market tightness
 
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla FincorpWho Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
 
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
 
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
 
Fabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio ProblemFabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio Problem
 
Using Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trendsUsing Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trends
 
Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...
 
Detailed power point presentation on compound interest and how it is calculated
Detailed power point presentation on compound interest  and how it is calculatedDetailed power point presentation on compound interest  and how it is calculated
Detailed power point presentation on compound interest and how it is calculated
 
Upanishads summary with explanations of each upnishad
Upanishads summary with explanations of each upnishadUpanishads summary with explanations of each upnishad
Upanishads summary with explanations of each upnishad
 
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
 
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
 
Enhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial InstitutionsEnhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial Institutions
 
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
 

Indifference curve and budget line

  • 1. INDIFFERENCE CURVE PRESENTED BY:- DR. JYOTI KHARE ASSOCIATE PROFESSOR GOVT. P. G. COLLEGE MALDEVTA, (RAIPUR) DEHRADUN
  • 2. Indifference Curve  New analysis/Substitution analysis  Preference approach to consumer behaviour  U is inherent and subjective  Associated with the name of J. R. Hicks and R.J.D Allen  Content with the fact of the consumer’s Preferences.
  • 3. ASSUMPTIONS…….  Consumer is not interested in one commodity at a particular time  The consumer while spending money on goods act in a rational income  (2) There are two goods X and Y.  (3) The consumer possesses complete information about the prices of the goods in the market.  4) The prices of the two goods are given.  (5) The consumer’s tastes, habits and income remain the same throughout the analysis.  (6) He prefers more of X to less of У or more of Y to less of X.  (7) An indifference curve is negatively inclined sloping downward.
  • 5. PROPERTIES OF INDIEERENCE CURVE  Indifference curve slopes downward from left to right.  Indifference curve are convex to origin.  Two Indifference curve can not touch or intersect each other.  Higher Indifference curve represents higher level of satisfaction.  Indifference curve need not to be parallel to each other. ( Due to Ordinal, marginal rate of 2 comd. Not same, IC – no width)
  • 6. Indifference Map (Collection of indifference curves and represents a higher level of satisfaction)  The Indifference Map is the graphical representation of two or more indifference curves showing the several combinations of different quantities of commodities, which consumer consumes, given his income and the market price of goods and services
  • 7. Budget line  A budget line shows the combinations of two products that a consumer can afford to buy with a given income – using all of their available budget.  Let us understand the concept of Budget line with the help of an example: Suppose, a consumer has an income of 2000. He wants to spend it on two commodities: X and Y, where each is priced at 1000. Now, the consumer has three options to spend all of his income: 1. Buy 2 units of X,  2. Buy 2 units of Y,  or 3. ONE UNIT OF BOTH
  • 8. BUDGET LINE  Budget line should be tangent to the indifference curve  Consumer's equilibrium is based on the assumption that the income of a consumer is constant and that he spends his entire income on purchasing two goods whose prices are given. Budget line should be tangent to the indifference curve