The Indifference Curve

Different Combinations of two commodities say food and clothing at a give set price. For each combination of two goods, assume that we refer one to other or are indifferent between the pair for the example when asked to choose between combination “A” Of 1 unit of food and 6 unit of clothing and combination of “B” 2 units of food and 3 units of clothing and “D” is 4 units of food and 1.500 units of clothing this is the indifference curve between food and clothing.

Law of Substitution.

If we join the point “A” and “B” are find that the slope of the resulting line and same as with “C” and “D” so that the substitution ratios we can also says that marginal ratios of substitution.

The Indifference Maps.

The table figures shoe the indifference in the Graphical Depiction. If a person who have highly income he satisfied the high quantity of food and clothing.

Indifference Combinations.

Food Clothing

A

1

6

B

2

3

C

3

2

D

4

1.500