INDIFFERENCE CURVE DOUBT

[TAANYA]

Draw indifference curves for the following situations:

1)suresh, who likes movie as well as concerts, but likes each succesive movie as well as concert that he goes to less than  the previous movie/concert he went to.
 
2)amita prefers more movies to less, but doesnt care if she goes to fewer or more concerts
 
3)snajays dislikes movies and concerts.however, he dislikes each concert more the more concerts he goes to. on the other hand, he dislikes each movie the same no matter how many movies he goes to
 
i m so confused!!please help with above

[sanjana26]

hello taanya..

I think in the 1st part the person has convex downward sloping ics moving towards the bliss point
showing more is better and each successive unit of both the goods is more preferable..

However in the last part..both goods are bad and as ics move away from bliss point that is in north east direction the consumer ffurther gets worse off !

[laracroft]

1) concave downward sloping ICs
2)concert is neutral good so if u take concert in x axis and movies o. Y axis then u get vertical ICs where IC on right has higher utility than previous IC .
3)concave upward sloping ICs whee utility rises with more movies on x axis and less concerts on y axis

Hope that helps Tanya :) :)

..

[TAANYA]

hey thanks a ton!!

ok last min doubt...if u have two bads to choose from then wouldnt the consumer become neutral as a result??what will then be the shape of indifference curve?

[sanjana26]

ok I think in second part what u r saying is correct only if neutral good  is taken on the y axis.

tanya if both gooda are bads then our preference direction is south-west..our bliss point is in south west direction..
in this case we have upward sloping concave ICs .

[sanjana26]

sorry concave downward sloping for two bads.