Figure 4-1a: Pizza/movie preferences

A C
2
Pizza

1 B

0 1 2

Movies

 Figure 4-1b: Indifference curves

A C
Pizza

1 B

0 1 2
Movies
 Figure 4-2: Upward-sloping indifference

Pizza
curve

0 1 2

Movies

 Figure 4-4: Diminishing marginal utility

Utility

0
Movies
 Figure 4-5: Diminishing marginal utility for U

= sqrt(P*M)

3
Marginal utility

2
(1, 1.4)

1
(2, .6)
(3, .45) (4, .38)

0 1 2 3 4

Movies

 Figure 4-6: Indifference curve and MRS

4 (1,4)

3
Pizza

(2,2)
2

(4,1)
1

0 1 2 3 4

Movies

MIT OpenCourseWare
http://ocw.mit.edu

14.01SC Principles of Microeconomics

Fall 2011

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