Definition of indifference curve

In order to know the meaning of the term indifference curve, it is necessary, first, to discover the etymological origin of the two main words that shape it:-Curva, firstly, comes from Latin.Specifically, derives from "curvus", which can be translated as "curved".-Indifference, secondly, also emanates from Latin.In its case, it derives from "indifferentia", which is synonymous with "quality of not distinguishing" and which is the result of the sum of four delimited components: the prefix "in-", which means "no"; the element "dis-", which is synonymous with "separation"; the verb "ferre", which can be translated as "carry"; and the suffix "-ia", which is used to indicate "quality".

In the field of economics it is common to appeal to the notion of curve with reference to the graphical representation of the magnitude of a phenomenon: demand curve , supply curve , etc.

In this opportunity we will focus on the concept of indifference curve , which allows to know the different combinations of products that give the buyer the same degree of satisfaction.This allows to analyze the behavior of the consumer.

To obtain the indifference curve, the individual should be asked what is the combination of two products that he prefers, varying the quantities of each.The greater the quantity of a product R , the quantity decreases of a product S and vice versa.Upon reaching two options that are indifferent to the person , both points are on the same indifference curve.In that curve, all the Points give you identical satisfaction level .

What the indifference curve does is reveal the predilections between product pairs , regardless of the price of the good or the consumer's income.of indifference, in fact, the different points have different monetary values, although the satisfaction they provide to the consumer is the same.

An indifference curve can be drawn by combining pizzas and empanadas , for example.The consumer can choose different combinations: 4 pizzas and 24 empanadas, 6 pizzas and 18 empanadas , 8 pizzas and 12 empanadas, etc.The curve reveals how many pizzas you are willing to give up to buy more empanadas, and the same but the other way around (how many empanadas you would stop buying to get more pizzas).

In addition to all of the above, we cannot ignore an important series of data or characteristics of the curves called regular indifference as they are:.-The further they are from the origin, the higher the level of utility they have.-The slope that has an indifference curve responds to the name of marginal substitution relationship.

Also, we must know that there is several types of indifference curves.Specifically, among the most frequent, one can speak, for example, of both the indifference curves of goods that are perfect complementary, as well as the so-called indifference curves of goods that are perfect substitutes.