Indifference curves are an important idea in understanding what people like to buy in microeconomics. Let’s break it down:
What They Are: Indifference curves show different combinations of two products that give you the same happiness. It’s like walking along a path where your happiness stays the same, no matter where you step.
How They Look: These curves usually slope downwards and curve outward. This means that if you have less of one product, you will need more of the other product to feel just as happy.
Higher Curves Mean More Happiness: When a curve is farther away from the starting point, it means more satisfaction. So, people usually like higher curves more!
In short, indifference curves help us understand choices and make it easier to see how people decide what to buy.
Indifference curves are an important idea in understanding what people like to buy in microeconomics. Let’s break it down:
What They Are: Indifference curves show different combinations of two products that give you the same happiness. It’s like walking along a path where your happiness stays the same, no matter where you step.
How They Look: These curves usually slope downwards and curve outward. This means that if you have less of one product, you will need more of the other product to feel just as happy.
Higher Curves Mean More Happiness: When a curve is farther away from the starting point, it means more satisfaction. So, people usually like higher curves more!
In short, indifference curves help us understand choices and make it easier to see how people decide what to buy.