Introduction to Indifference Curves

What you’ll learn to do: find consumer equilibrium using indifference curves and a budget constraintImage of caliper holding a stack of coins next to a calculator. The caliper is laying on a budget report.

Although numbers can be used to illustrate consumer preferences, economists don’t believe that we can objectively measure someone’s utility. In this section, you’ll learn an alternative way of identifying consumer equilibrium that only requires that you can rank preferences—that is, you can say whether you prefer Option A to Option B.

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