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## Examples of Indifference Curves

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**Examples of Indifference Curves**Lectures in Microeconomics-Charles W. Upton**Three Examples**• We are going to do some special cases to illustrate how some special indifference curves look. Examples of Indifference Curves**Coke® or Pepsi®**• I don’t care whether you have Coke® or Pepsi®, as long as it is cola. Examples of Indifference Curves**Coke® or Pepsi®**• I don’t care whether you have Coke® or Pepsi®, as long as it is cola. • This is a case we discussed earlier: perfect substitutes. Examples of Indifference Curves**Coke and Pepsi**Coke 4 5 7 3 8 2 \ 6 1 Pepsi Examples of Indifference Curves**Coke and Pepsi**Coke 4 5 7 3 8 2 \ 6 1 Pepsi Examples of Indifference Curves**Coke and Pepsi**Coke 4 5 7 3 I1 8 2 \ 6 1 Pepsi Examples of Indifference Curves**Coke and Pepsi**Coke 4 I2 5 7 3 I1 8 2 \ 6 1 Pepsi Examples of Indifference Curves**Coke and Pepsi**Coke I3 4 I2 5 7 3 I1 8 2 \ 6 1 Pepsi Examples of Indifference Curves**Left and Right Shoes**• Perfect Complements Examples of Indifference Curves**Left and Right Shoes**Right Shoes 4 5 7 3 8 2 \ 6 1 Left Shoes Examples of Indifference Curves**Left and Right Shoes**Right Shoes 4 5 7 3 8 2 \ 6 I1 1 Left Shoes Examples of Indifference Curves**Left and Right Shoes**Right Shoes 4 5 7 3 8 I2 2 \ 6 I1 1 Left Shoes Examples of Indifference Curves**Left and Right Shoes**Right Shoes 4 5 7 3 I3 8 I2 2 \ 6 I1 1 Left Shoes Examples of Indifference Curves**Third Example**• Indifference curves between Bourbon and Temperance Lectures for W.C. Fields and Carrie Nation. Examples of Indifference Curves**Third Example**• Indifference curves between Bourbon and Temperance Lectures for W.C. Fields and Carrie Nation. • W. C. Fields was a movie actor with a legendary drinking problem. Examples of Indifference Curves**Third Example**• Indifference curves between Bourbon and Temperance Lectures for W.C. Fields and Carrie Nation. • W. C. Fields was a movie actor with a legendary drinking problem. • Carrie Nation was a prominent leader in the temperance movement. Examples of Indifference Curves**W. C. Fields**Bourbon 4 5 I4 7 3 I3 8 I2 2 \ I1 Temperance Lectures 6 1 Examples of Indifference Curves**Carrie Nation**Bourbon I1 I2 I3 I4 4 5 7 3 8 2 Temperance Lectures \ 6 1 Examples of Indifference Curves**Apples and Bananas**• I like apples and bananas. If you cut the number of apples in half and double the number of bananas, I am just as well off. Examples of Indifference Curves**Apples and Bananas**• I like apples and bananas. If you cut the number of apples in half and double the number of bananas, I am just as well off. • This is a more standard case. Examples of Indifference Curves**Apples and Bananas**• I like apples and bananas. If you cut the number of apples in half and double the number of bananas, I am just as well off. • This is a more standard case. • It actually corresponds to U(A, B) = AB Examples of Indifference Curves**Apples and Bananas**• I like apples and bananas. If you cut the number of apples in half and double the number of bananas, I am just as well off. • This is a more standard case. • It actually corresponds to U(A, B) = AB • To see this, note that (0.5A)(2B) = AB. Examples of Indifference Curves**Apples and Bananas**A 4 5 7 3 8 2 \ 6 1 I1 B Examples of Indifference Curves**Apples and Bananas**A 4 5 7 3 8 2 \ I2 6 1 I1 B Examples of Indifference Curves**Apples and Bananas**A 4 5 7 3 I3 8 2 \ I2 6 1 I1 B Examples of Indifference Curves**More to Come**• Done • The Basic Model of Utility Maximization • Some Applications to Indifference Curve • We continue this topic in the next lecture. Examples of Indifference Curves**End**©2004 Charles W. Upton Examples of Indifference Curves