Indifferenssikäyrän

Indifferenssikäyrä, also known as an indifference curve, is a fundamental concept in microeconomics representing combinations of two goods that provide a consumer with the same level of satisfaction or utility. It illustrates the preferences of a consumer, showing that any point on a given curve yields an equal amount of well-being. If a consumer moves to a higher indifference curve, they are better off, meaning they have reached a higher level of utility. Conversely, a move to a lower indifference curve signifies a decrease in satisfaction.

Indifference curves are typically downward sloping, reflecting a trade-off between the two goods. To maintain the same level of utility, a consumer must give up some of one good to gain more of the other. They are also convex to the origin, illustrating the principle of diminishing marginal rate of substitution. This means that as a consumer has more of one good, they are willing to give up less of the other good to obtain an additional unit. Indifference curves for the same consumer will not intersect, as this would imply contradictory levels of utility. The shape and position of indifference curves vary among individuals, reflecting their unique tastes and preferences.