Meaning of Indifference Curves

  Pareto, an Italian economist, first invented the concept of indifference curve. Edge worth stated this device in his book ‘Mathematical Physics’. Later it was developed and applied to economic analysis by economists like Hicks and Allen Indifference curve is a geometrical identity that exhibits the various amounts of two or more commodities, which yield […]

Indifference Curve

  Marshall’s utility concept causes enormous difficulty in the analysis of demand. This concept assumes too much namely a utility is measurable, it is a subjective phenomenon, marginal utility of money is constant and utility from one commodity depends on its own consumption. Modern economists like Prof. J. R. Hicks and R. G. Allen attacked […]

Utility

Utility It is defined as the power of a commodity or service to satisfy a human want It is a subject phenomenon varies from person to person. The utility depends on the mental made up of the consumer. It does not carry moral or legal significance. For example liquor is harmful for health yet it […]