| 21. | The indifference curves and budget constraint can be used to predict the effect of changes to the budget constraint.
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| 22. | Another investor having other sets of indifference curves might have some different portfolio as his best / optimal portfolio.
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| 23. | Normally, I would find this easy to graph, creating the indifference curves eqyal to a fixed C.
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| 24. | The theory of indifference curves was developed by Pareto and others in the first part of the 20th century.
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| 25. | For a given pair of goods, many indifference curves can be drawn and placed next to each other.
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| 26. | In the illustration below this corresponds to an imaginary budget constraint denoted SC being tangent to the indifference curve I1.
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| 27. | A line connecting all points of tangency between the indifference curve and the budget constraint is called the expansion path.
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| 28. | A social indifference curve drawn from an intermediate social welfare function is a curve that slopes downward to the right.
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| 29. | At this equilibrium point, the slope of the highest indifference curve must equal the slope of the production function.
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| 30. | These developments were accompanied by the introduction of new tools, such as indifference curves and the theory of ordinal utility.
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