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Lectures in Microeconomics-Charles W. Upton Examples of Indifference Curves

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Three Examples We are going to do some special cases to illustrate how some special indifference curves look.

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Examples of Indifference Curves Coke® or Pepsi® I dont care whether you have Coke® or Pepsi®, as long as it is cola.

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Examples of Indifference Curves Coke® or Pepsi® I dont care whether you have Coke® or Pepsi®, as long as it is cola. This is a case we discussed earlier: perfect substitutes.

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Examples of Indifference Curves Coke and Pepsi \ Coke Pepsi 1 5 7 2 4 3 8 6

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Examples of Indifference Curves Coke and Pepsi \ Coke Pepsi 1 5 7 2 4 3 8 6

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Examples of Indifference Curves Coke and Pepsi \ Coke Pepsi 1 5 7 2 4 3 8 6 I1I1

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Examples of Indifference Curves Coke and Pepsi \ Coke Pepsi 1 5 7 2 4 3 8 6 I1I1 I2I2

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Examples of Indifference Curves Coke and Pepsi \ Coke Pepsi 1 5 7 2 4 3 8 6 I1I1 I2I2 I3I3

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Examples of Indifference Curves Left and Right Shoes Perfect Complements

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Examples of Indifference Curves Left and Right Shoes \ Right Shoes Left Shoes 1 5 7 2 4 3 8 6

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Examples of Indifference Curves Left and Right Shoes \ Right Shoes Left Shoes 1 5 7 2 4 3 8 6I1I1

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Examples of Indifference Curves Left and Right Shoes \ Right Shoes Left Shoes 1 5 7 2 4 3 8 6I1I1 I2I2

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Examples of Indifference Curves Left and Right Shoes \ Right Shoes Left Shoes 1 5 7 2 4 3 8 6I1I1 I2I2 I3I3

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Examples of Indifference Curves Third Example Indifference curves between Bourbon and Temperance Lectures for W.C. Fields and Carrie Nation.

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Examples of Indifference Curves Third Example Indifference curves between Bourbon and Temperance Lectures for W.C. Fields and Carrie Nation. –W. C. Fields was a movie actor with a legendary drinking problem.

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Examples of Indifference Curves Third Example Indifference curves between Bourbon and Temperance Lectures for W.C. Fields and Carrie Nation. –W. C. Fields was a movie actor with a legendary drinking problem. –Carrie Nation was a prominent leader in the temperance movement.

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Examples of Indifference Curves W. C. Fields \ Bourbon Temperance Lectures 1 5 7 2 4 3 8 6 I1I1 I2I2 I3I3 I4I4

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Examples of Indifference Curves Carrie Nation \ Bourbon Temperance Lectures 1 5 7 2 4 3 8 6 I1I1 I2I2 I3I3 I4I4

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Examples of Indifference Curves Apples and Bananas I like apples and bananas. If you cut the number of apples in half and double the number of bananas, I am just as well off.

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Examples of Indifference Curves Apples and Bananas I like apples and bananas. If you cut the number of apples in half and double the number of bananas, I am just as well off. This is a more standard case.

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Examples of Indifference Curves Apples and Bananas I like apples and bananas. If you cut the number of apples in half and double the number of bananas, I am just as well off. This is a more standard case. It actually corresponds to U(A, B) = AB

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Examples of Indifference Curves Apples and Bananas I like apples and bananas. If you cut the number of apples in half and double the number of bananas, I am just as well off. This is a more standard case. It actually corresponds to U(A, B) = AB To see this, note that (0.5A)(2B) = AB.

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Examples of Indifference Curves Apples and Bananas \ A B 1 5 7 2 4 3 8 6 I1I1

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Examples of Indifference Curves Apples and Bananas \ A B 1 5 7 2 4 3 8 6 I2I2 I1I1

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Examples of Indifference Curves Apples and Bananas \ A B 1 5 7 2 4 3 8 6 I2I2 I1I1 I3I3

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Examples of Indifference Curves More to Come Done –The Basic Model of Utility Maximization –Some Applications to Indifference Curve We continue this topic in the next lecture.

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Examples of Indifference Curves End ©2004 Charles W. Upton

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