The derivation of an individual consumer demand curve can be done using the indifference curve approach. This is done by preparing the demand schedule of a consumer from the price consumption curve.
A perfectly competitive firm's supply curve is that portion of its marginal cost curve that lies above the minimum of the average variable cost curve.
Assuming that the aggregate demand curve does not move, the only way for the gap to be closed is by a shift in aggregate supply. These gaps cause a change in inflation expectations, moving the AS curve left (exp) or right (rec) back to long term equilibrium and changing the inflation rate.
easton's zetterburg
A French curve is a tool used to draw different curves there are lots of swirls and circles so if a circle guide isn't good enough the French curve can draw and curves possible.
a curve plotted by Lother Meyer between atomic mass and atomic volume of different elements is called Lother Meyer's curve. In this curve similar elements were found to occupy similar positions. Lother Meyer concluded the results obtained from the curve as, "atomic volume of elements are periodic functions of their atomic masses". But later on it was modified as atomic volumes of elements, are periodic function of their atomic numbers.
how is a demand curve derived from individual demand curve ?
income
Hicks and Allen developed Ordinal approach or Indifference Curve Approach.
indifference curve approach show the combination of two goods that an individual would be willing to buy, and which would make the buyer equally satisfied (or different). indifference curve assume that more is preferred to less. thay are convex as seen from the origin. the indifference curve form an entire map of various level of satisfaction..
indifference curve analysis is not much in use because it only tells us that demand curve has a negative slope except when they don't ....
Indifference curve: series of curve reflecting the preference structure of the individual. Budget constraint: the material resource constraint the individual faces in choices. The demand curve, being inherently designated as rational, seeks to maximise utility. Thus, in a Walrasian equilibrium, the consumer construct his demand curve at the points where his contract curve equals to his budget constraint (or, in mathematical terms, when the constraint and optimal indifferences are tangent to one another). These tangencies construct a curve which is the individual's demand function.
Indifference curve is a curve that shows consumption bundles that give the consumer the same level of satisfaction. Indifference map, on the other hand Indifference curve is a graph of two or more indifference curves.
two indifference curve never cut each other..
Consumer equilibrium is the point where consumer attains highest level of satisfaction. There are two conditions of equilibrium under ordinal approach 1- Necessary Condition: 'Budget line is tangent to the highest possible indifference curve.' 2- Sufficient Condition: 'At equilibrium, Indifference curve must be convex to the origin' Thus, at equilibrium , Px/Py (absolute slope of Budget line) = dy/dx (absolute slope of Indifference Curve) (In simple words, it'd determination of consumer's equilibrium with the help of Indifference curve.)
what will be the shape of indifference curve if one of the two goods is a free commodity
a single indifference curve cannot cross itself.
The three major characteristics of an indifference curve are: 1. They are negatively sloped 2. They are convex to the origin 3. Indifference curve cannot be intersected