Derivation of Demand Curve for
a Normal Good
Using Indifference Curve Analysis
, Introduction to Indifference Curve
Analysis
• • Indifference Curve: Shows combinations of
two goods providing the same satisfaction.
• • Consumer equilibrium: Occurs where the
budget line is tangent to the highest attainable
indifference curve.
a Normal Good
Using Indifference Curve Analysis
, Introduction to Indifference Curve
Analysis
• • Indifference Curve: Shows combinations of
two goods providing the same satisfaction.
• • Consumer equilibrium: Occurs where the
budget line is tangent to the highest attainable
indifference curve.
