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Indifferencecurves|Policonomics
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Neoclassical school
Marginal revolution
Edgeworth box
Arthur C. Pigou
Irving Fisher
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Indifference curves
Indifference curves are lines in a coordinate system for which each of its points express a particular
combination of a number of goods or bundles of goods that the consumer is indifferent to consume. This is,
the consumer will have no preference between two bundles located in the same indifference curve, since they
all provide the same degree of utility. The indifference curves, as we move away from the origin of
coordinates, imply higher consumption and, therefore, increasing levels of utility.
An indifference map is a combination of indifference curves, which allows understanding how changes in the
Neoclassical econ.
Consumption I
Consumption II
Francis Y. Edgeworth, developed the mathematics concerning the drawing of indifference curvesin his book
Mathematical Psychics: an Essay on the Application of Mathematics to the Moral Sciences, 1881, from
earlier works by William Stanley Jevons. However, Vilfredo Pareto was the first economist to draw
indifference maps as we know them nowadays, in his book Manual of Political Economy, published in 1906.
MRS
Utility function
Utility max.
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2012 Policonomics
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