Answer to Question #254995 in Microeconomics for bibble

Question

Use diagrams to illustrate each of the following:

(i) the equilibrium of a consumer (consumer satisfaction or utility is

maximized) using indifference theory

(ii) how the demand curve for one product is derived for a consumer using her

indifference map.

Answer 1

Maximum satisfaction point is gained through studying both budget line and indifference map.