In this article we will discuss about the assumptions and properties of the trade indifference curve. The device of trade indifference curve was originally forged by the writers like Leontief and Lerner. It was finally perfected by J.E. Meade in 1952 in his work, A Geometry of International Trade. This device shows, given a particular level of income, what terms [...]
In this article we will discuss about the community indifference curves with its criticisms. Just as an indifference curve pertaining to an individual consumer depicts different combinations of the two commodities which provide equal satisfaction and are, therefore, equally preferred, similarly a community indifference curve or social indifference curve represents such combinations of two commodities which give equal satisfaction to [...]
In this article we will discuss about:- 1. The Assumptions Equilibrium of the Consumer 2. Determination of the Equilibrium Purchase Plan 3. First-Order or Necessary Condition for Consumer Equilibrium 4. Economic Interpretation of the First-Order Conditions for Consumer Equilibrium 5. The Second-Order or Sufficient Condition for Consumer Equilibrium 6. Consumer Equilibrium – the Stability Considerations. The Assumptions Equilibrium of the [...]