#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
we could construct any number of indifference curves in the same manner we made the first indifference curve, simply by starting at a different initial bundle. The result is an entire family of indifference curves, called an indifference curve map
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3. UTILITY THEORY: MODELING PREFERENCES AND TASTESgoods. In that case, we could have gone through the same process of trial and error, and we would have ended up with another indifference curve, this one passing through the new point and lying above and to the right of the first one. Indeed, <span>we could construct any number of indifference curves in the same manner simply by starting at a different initial bundle. The result is an entire family of indifference curves, called an indifference curve map , and it represents our consumer’s entire utility function. The word map is appropriate because the entire set of indifference curves comprises a contour map of this consumer’s utility fu Summary
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