indifference curve
Definition
A curve used in economics which shows how consumers would react to different combinations of products. On the graph, a quantity of one product appears on the x axis and a quantity of another product appears on the y axis. Consumers would be equally satisfied at any point along a given curve, as each point brings the same level of utility to that consumer. The slope of the curve is referred to as the marginal rate of substitution.
Use indifference curve in a sentence
“ Our experts had studied the indifference curve on the product line and concluded that we could move ahead as planned. ”
“ In economics class, we went over the indifference curve that would show everyone how consumers would react to different combinations of products. ”
“ When they plotted out the consumer response to a high-fiber, low-sugar cereal and a high-sugar, low-fiber cereal, the indifference curve began to favor the high-fiber variety. ”
