Indifference Curve

An indifference curve depicts all the bundles that provides the same utility.


Alice's utility given `X` chocolates and `Y` strawberries is $$ u \left( X, Y \right) = X \times Y $$

Her indifference curve at a level of utility equal to 1 satisfies $$ u \left( X, Y \right) = X \times Y = 1 $$

Solving for Y $$ Y = 1 / X $$

Similarly, she gets utility 2 if `Y = 2 / X`.


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