Indifference Curve

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DEFINITION of 'Indifference Curve'

A diagram depicting equal levels of utility (satisfaction) for a consumer faced with various combinations of goods.

 

Indifference Curve

BREAKING DOWN 'Indifference Curve'

As an example, consider the diagram above. This consumer would be most satisfied with any combination of products along curve U3. This consumer would be indifferent between combination Qa1, Qb1, and Qa2, Qb2.

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