Indifference map

Indifference map

In microeconomic theory a preference map or indifference map is the collection of indifference curves posessed by an individual. Similar in nature to a topographical map, the contour lines of such a map demonstrating progressively more desireable options as they move upward or to the right. Because of the nature of indifference curves they cannot intersect and are effectively infinite in number, their sum defining all possible combinations of values.

An individual will choose to consume goods at the point where their budget constraint is tangent to an indifference curve their preference map. Because of the nature of the preference map, there is only on possible curve and one possible consumption point on any given combination of preference map and budget constraint. It is by accumulating these consumption points that a demand curve can be generated.

* see also Indifference curve


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Indifference curve — In microeconomic theory, an indifference curve is a graph showing different bundles of goods, each measured as to quantity, between which a consumer is indifferent. That is, at each point on the curve, the consumer has no preference for one… …   Wikipedia

  • Map of Tendre — The Carte de Tendre or Carte du Pays de Tendre The Map of Tendre (Carte de Tendre or Carte du Tendre) was a French map of an imaginary land called Tendre produced by several hands (including Catherine de Rambouillet). It appeared as an engraving… …   Wikipedia

  • Кривая безразличия — INDIFFERENCE CURVE График, отображающий все возможные сочетания двух продуктов, дающих потребителю одинаковую полезность или удовлетворение: Сочетание количества ОА продукта Х и количества ОВ продукта Y дает потребителю такое же удовлетворение,… …   Словарь-справочник по экономике

  • Карта безразличия — INDIFFERENCE MAP Совокупность кривых безразличия, при помощи которых можно показать графически, что потребительская полезность увеличивается по мере удаления кривой от начала координат: любое сочетание продуктов Y и Х на кривой 4 обладает ольшей… …   Словарь-справочник по экономике

  • utility and value — ▪ economics Introduction       in economics, the determination of the prices of goods and services.       The modern industrial economy is characterized by a high degree of interdependence of its parts. The supplier of components or raw materials …   Universalium

  • Ordinal utility — theory states that while the utility of a particular good or service cannot be measured using a numerical scale bearing economic meaning in and of itself, pairs of alternative bundles (combinations) of goods can be ordered such that one is… …   Wikipedia

  • K — Кадастровая стоимость (Cadastre value) Кадастровый учет, кадастр (Cadastre) Кадастровый номер земельного участка (Cadastre number of a plot of land) Кадровый резерв (Personnel reserve) Кадры (Personnel) Казенное предприятие (state owned unitary… …   Экономико-математический словарь

  • Intertemporal choice — is the study of the relative value people assign to two or more payoffs at different points in time. This relationship is usually simplified to today and some future date. Intertemporal choice was introduced by John Rae in 1834 in the… …   Wikipedia

  • UNITED STATES OF AMERICA — UNITED STATES OF AMERICA, country in N. America. This article is arranged according to the following outline: introduction Colonial Era, 1654–1776 Early National Period, 1776–1820 German Jewish Period, 1820–1880 East European Jewish Period,… …   Encyclopedia of Judaism

  • literature — /lit euhr euh cheuhr, choor , li treuh /, n. 1. writings in which expression and form, in connection with ideas of permanent and universal interest, are characteristic or essential features, as poetry, novels, history, biography, and essays. 2.… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”