Help econ indifference curve

2007-10-15 4:09 pm
Question 2:Muffins and pie if these are goods that you like, but if you consume enough of either, you get sick of them. (if you are sick of a good, consuming more of it lowers your utility)
Draw indifference curves to represent the following descriptions of consumer perferences. Indicate the direction in which the individuals' satisfaction (or utility) is incresing.
更新1:

if it is concave in the part of the ic curve, is it against to the dmrs?

更新2:

i mean if ic curve is not concave to the orgin and part of them is convex, is it against to the dmrs?

回答 (1)

2007-10-15 7:28 pm
✔ 最佳答案
The indifference is convex to the origin when total utility is increasing, marginal utility is positive. (Imagin a circle on the quadrant. Convex is the outside of the circle facing the origin.) You are still willing to sacrifice some muffins to get more pies.

When total utility decreases (marginal utiltiy becomes negative), the indifference curve is concave to the origin. (Imagin a circle on the quadrant. Convex is the outside of the circle facing opposite the origin.) You need to be paid some muffins to eat more pies.

When the indifference turns from convex to concave, the marginal utility is 0.

2007-10-15 11:30:24 補充:
At the two ends of the indifference curve, the curve is concave. In the middle part of the indifference curve, the curve is convex.

2007-10-16 00:56:54 補充:
Sorry, I think I made a mistake here.When the marginal utility of good X bceomes negative, say 3Y and 4X gives the same utility as 4Y and 5X, the indifference curve becomes upward sloping.At the two ends of IC, IC is upward sloping and in the middle, IC is downward sloping.

2007-10-16 00:57:20 補充:
Sorry for the confusion.


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