An indifference curve is used in contemporary microeconomics to demonstrate the effect of preference and budget limitations when consumers are choosing between products that would give them equal ...

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.

Consumer’s Equilibrium using Indifference Curve: Indifference Curve, Indifference map, budget set and budget line, conditions of Consumer’s Equilibrium. Demand: Concept of demand, Law of ...