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

INVESTOPEDIA EXPLAINS '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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    It's difficult to measure a qualitative concept such as utility, but economists try to quantify it in two different ways: ... Read Full Answer >>
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    In microeconomics, utility represents a way to relate the amount of goods consumed to the amount of happiness or satisfaction ... Read Full Answer >>
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