Saturday, May 2, 2020

Indifference Map

Indifference map
An indifference map of a consumer represents his tastes and preferences as between different combinations of them. It represents his scale of preferences. The map changes when his taste and preferences change. 
 In the above diagram, curves1,2,3,4 are the various indifference curves and any combination of wheat and rice on curve 1 will give the same satisfaction on the curve 1. Whereas point A gives lower satisfaction than point B, B lower than point C and C lower than point D.A<B<C<D. The higher the curve the higher the satisfaction. 

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