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#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
An indifference curve shows all combinations of two goods such that the consumer is indifferent between them
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3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ifference curve. Correspondingly, the “dominated-by-bundle-a” set has expanded to include all bundles that lie in the region below and to the left of the indifference curve. Exhibit 2. An Indifference Curve Note: <span>An indifference curve shows all combinations of two goods such that the consumer is indifferent between them. The indifference curve represents our consumer’s unique preferences over the two goods wine and bread. Its negative slope simply represents that both wine and bread are se


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