00:01
So here let's sketch some difference curves, right? for the first one, we're going to put, what is it, ice cream on the vertical, on the horizontal axis and chocolate on the vertical one.
00:16
Here we like these things both a lot.
00:18
So remember, an indifference curve shows us how happy we are, right? so we like these things both a lot.
00:24
My indifference curves look normal, right? these would be like big numbers, though, right? that that actually means anything.
00:34
But here, both of these goods, getting more of both brings you to higher levels of utility, right? more equals more utility.
00:44
As i get more of one good, right? let's suppose that i start here.
00:49
As i get more of one good, i grow in utility.
00:52
As i get more of another good, i grow in utility.
00:55
So when you like both goods, that is what gives you normal looking indifference curves that are sort of convex to the origin.
01:05
Now, so a, you have normal goods.
01:09
B is where it gets a little bit exciting...