Maximising Satisfaction – Indifference Curves (Grade 10 NSC Matric Economics): Flashcards
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Definition of indifference curve
Definition of indifference curve
Line showing combinations of 2 goods giving equal satisfaction
Why 'indifference' in indifference curve?
Why 'indifference' in indifference curve?
Consumer indifferent between combinations on same curve
Shape of indifference curve
Shape of indifference curve
Downward sloping & convex towards origin
Points on same indifference curve meaning
Points on same indifference curve meaning
All provide equal satisfaction to consumer
Effect of income increase on indifference curves
Effect of income increase on indifference curves
Move to higher curve with greater satisfaction
IC₃ vs IC₁: which shows highest satisfaction?
IC₃ vs IC₁: which shows highest satisfaction?
IC₃ (farthest from origin)
Can two indifference curves intersect?
Can two indifference curves intersect?
No, curves with different satisfaction levels never cross
Why convex shape in indifference curves?
Why convex shape in indifference curves?
Reflects diminishing marginal rate of substitution
Trade-offs in indifference curves
Trade-offs in indifference curves
Get more of one good by giving up some of the other
Axes on indifference curve graph
Axes on indifference curve graph
Horizontal: good x qty; Vertical: good y qty