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 THEORY

CHOICE AND UTILITY THEORY Whenever sets of alternatives are open to us at the same point of time, we often make choices. Provided we are all rational beings, it can be said that, behind all activities, our basic motive is to maximize the total level of satisfaction. Whatever we choose in our daily life depends […]