Class Notes (834,976)
Canada (508,836)
Economics (219)
ECON 1010 (102)
Lecture 47

ECON 1010 Lecture 47: Lecture 47
Premium

3 Pages
63 Views
Unlock Document

Department
Economics
Course
ECON 1010
Professor
Laura K.Brown
Semester
Spring

Description
o|82 1. For this reason, most indifference curves slope downwards 1. Negative slope 2. Indifference curves do not cross 3. Indifference curves are bowed inward (convex) 1. The slope of an indifference curve is the marginal rate of substitution – the rate at which the consumer is willing to trade off one good for the other 1. The marginal rate of substitution usually depends on the amount of each good the consumer is currently consuming o Because people are more willing to trade away goods that they have in abundance and less willing to trade away goods of which they have little, the indifference curves are bowed inward o Diminishing marginal utility is important (not an equivalent trade off between two items) Two Extreme Examples of Indifference Curves: 1. The shape of an indifference curve tells us about the consumers willingness to trade one good for the other
More Less

Related notes for ECON 1010

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit