The basis for the study of personal consumption (individual consumers and households) are indifference curves. The indifference curve is a line, each point of which represents such a combination of two goods that the consumer does not care which of them to choose. Indifference curves graphically reflect the consumer’s system of preferences. For the convenience […]
Tag: preference
Preference relation and utility function
Unlike the previous one, the second approach does not require measuring utility in any quantity. The consumer here can compare the usefulness of individual goods or a set of them and order them according to the degree of preference. The theory of the optimal choice of the consumer proceeds from the fact that he exercises […]