19. Indifference Curves

The third in a series of Microeconomics study resources that looks at consumer behavior theory , a branch of microeconomics that seeks to understand how individuals make decisions regarding the purchase, consumption, and disposal of goods and services. It explores the factors and processes that influence consumers’ choices, preferences, and behaviors in the marketplace.

This resource takes a look at indifference curves, a chart showing various combinations of two goods or commodities that give the consumer equal levels of satisfaction . It covers:

• Indifference curves and marginal rate of substitution
• Assumptions of indifference curves
• Properties and features of indifference curves
• Indifference curves of substitutes and complementary goods