Module 2: consumer behaviour part 2
Ordinal utility analysis
Utility is not additive but comparative
Indifference curve
o Locus of points which show the different combinations of two
commodities among which the consumer is indifferent, i.e. derives
same utility.
Indifference map
o Group of indifference curves
Indifference curve schedule
= Schedule that Indicates different Combinations of Two Commodities which
yield Equal Satisfaction.
Indifference curve
Presentation of indifference curve
It is a line that shows all possible
Combinations of Two Goods between which a
person is indifferent
Different combinations for the same level of
satisfaction
Indifference map
Shift to the right increase in satisfaction
Ordinal utility analysis
Utility is not additive but comparative
Indifference curve
o Locus of points which show the different combinations of two
commodities among which the consumer is indifferent, i.e. derives
same utility.
Indifference map
o Group of indifference curves
Indifference curve schedule
= Schedule that Indicates different Combinations of Two Commodities which
yield Equal Satisfaction.
Indifference curve
Presentation of indifference curve
It is a line that shows all possible
Combinations of Two Goods between which a
person is indifferent
Different combinations for the same level of
satisfaction
Indifference map
Shift to the right increase in satisfaction
