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Master Principles of Economics – Notes, Case Studies & Practical Insights – with Rahul

Indifference Schedule

Indifference schedule is a table representing the various combination of goods which give equal satisfaction to the consumer.

 

Table: An indifference schedule

 

Combinations                Cup of Tea           Biscuits

A                                          1                        50

B                                          2                        38

C                                          3                        28

D                                        4                         21

E                                         5                        17

In this case, the consumer is indifferent to all the five combinations above. Which means, he receives equal satisfaction from the above-listed combinations.

 

When we show above data in a graph by taking cups of tea in X-axis and biscuits in Y-axis, we obtain a curve which is known as the indifference curve.

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