Economics, 3rd Edition

indifference

 

curve

 shows the bundles of consumption that yield the same utility, i.e. makes the consumer equally 

happy. You can think of an indifference curve as an ‘equal-utility’ curve.

indifference curve 

a curve that shows consumption bundles that give the consumer the same level of satisfaction

In our example we are going to use indifference curves that show the combination of cola and pizza 

with which the consumer is equally satisfied.

The model of preferences which we are looking at has certain assumptions. These laws are based on 

two axioms (points of reference or starting points).