Microeconomics,, 16th Canadian Edition

(Sean Pound) #1

Figure 6A-2 Hugh’s Indifference Map


thereby generate many indifference curves for Hugh. The farther any
indifference curve is from the origin, the higher will be the level of Hugh’s
utility given by any of the points on the curve.


A set of indifference curves is called an indifference map, an example of
which is shown in Figure 6A-2. It specifies the consumer’s preferences
by showing his rate of substitution between the two products for every
possible level of current consumption of these products.


When economists say that a consumer’s preferences are given, they do not mean that the
consumer’s current consumption pattern is given; rather, they mean that the consumer’s entire
indifference map is given.

An indifference map consists of a set of indifference curves. All points
on a particular curve indicate alternative combinations of food and
clothing that give Hugh equal utility. The farther the curve is from the
origin, the higher is the level of utility it represents. For example, is a
higher indifference curve than which means that all the points on
give Hugh a higher level of utility than do the points on



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