Indifference Curve
A diagram depicting equal levels of utility (satisfaction) for a consumer faced with various combinations of goods.
Investopedia Commentary
As an example, consider the diagram above. This consumer would be most satisfied with any combination of products along curve U3. This consumer would be indifferent between combination Qa1, Qb1, and Qa2, Qb2.
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See also: Law of Diminishing Marginal Utility, Total Utility, Utility
indifference curve
in economics, graph showing various combinations of two things (usually consumer goods) that yield equal satisfaction or utility to an individual. Developed by the Irish-born British economist Francis Y. Edgeworth, it is widely used as an analytical tool in the study of consumer behaviour, particularly as related to consumer demand. It is also utilized in welfare economics, a field that focuses on the effect of different actions on individual and general well-being.
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