Indifference curves show groups of goods that give consumers the same level of happiness. But using these curves in real life has some problems:
Complex Preferences: What people want can be very complicated and hard to show with numbers.
Assumption of Rationality: This idea suggests that people always make smart choices, but that's not always true in real life.
Incomplete Information: Consumers might not have all the facts about what they like or how much things cost.
To fix these problems, we can use methods like surveys. This helps us learn more about how people really behave and improve the way we understand their choices. This makes it easier to see what people prefer in a way that matches real life better.
Indifference curves show groups of goods that give consumers the same level of happiness. But using these curves in real life has some problems:
Complex Preferences: What people want can be very complicated and hard to show with numbers.
Assumption of Rationality: This idea suggests that people always make smart choices, but that's not always true in real life.
Incomplete Information: Consumers might not have all the facts about what they like or how much things cost.
To fix these problems, we can use methods like surveys. This helps us learn more about how people really behave and improve the way we understand their choices. This makes it easier to see what people prefer in a way that matches real life better.