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Constructing Indifference Curves - Part 2

Using Indifference Curves

By Mike Moffatt, About.com

In Part 1 of Constructing Indifference Curves our goal was to assemble 90 skates. Now sales has increased our quota to 150 skates.

Goal: 150 Skates

Looking at our data (bottom of the page), it appears that there are 3 ways we can accomplish this task:
  1. Sammy works 2 hours (150 skates) and Chris works 0 hours (0 skates)
  2. Sammy works 1 hour (90 skates) and Chris works 2 hours (60 skates)
  3. Sammy works 0 hours (0 skates) and Chris works 5 hours (150 skates)
Once again we will plot these putting Chris on the X axis and Sammy on the Y axis. Thus we need to plot the points (0,2), (2,1), and (5,0). Also because there is the potential for each to work fractions of hours, we need to connect the dots between (0,2) and (2,1) and between (2,1) and (5,0). Once you've done that your graph should look like the purple line from indifference curve 2.

Note that the purple line on this graph, which represents 150 skates, is above the blue line which represents 90 skates. This intuitively makes sense as it means that if we want to increase our production we have to increase the amount of labor we use.

Once again we can continue our analysis by considering another level of production. In Constructing Indifference Curves - Part 3 we do just that.

Indifference Curve Data

Hour Sammy's Chris's
Worked Production Production
1st 90 30
2nd 60 30
3rd 30 30
4th 15 30
5th 15 30
6th 10 30
7th 10 30
8th 10 30

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