When an individual's budget is spent and optimized, and the budget line meets the indifference curve, the consumer's utility is maximized. Utility maximization is key to deriving the demand function.

If Alfred's indifference curve between income and leisure is positively sloped and convex, then the additional income required to induce Alfred to work additional hours is constant and equal to his ...

Discover how the economic concepts of marginal utility, ordinal preferences and indifference curves generate a unique way to think about consumer theory.

They provide three contributions. First, they provide an explicit connection between the form of the utility function and the graphical presentation of the indifference curves, budget constraints, and ...

This paper presents empirically determined indifference functions for income and leisure which exhibit the phenomena of loss aversion and a utility reference point determined by adaptation, as ...