Question:

Indifference Curve - how to obtain one.?

by Guest65062  |  earlier

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How do you sketch the indifference curve of two goods A and B?

I'm looking for an "easy to learn" explanation, so please try to do your best and write down for me like a list of the points to follow.

THANK YOU VERY MUCH!

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  1. Assume you have a utility function U(A,B) and A is on the X axis and B is on the Y axis.

    Pick a number for U (it can be any number, the important thing is to hold it constant).

    Solve for B in terms of A (so that you get an equation like B=[something]A)

    Graph it like you would any (x.y) function.

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