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Point

ProductAppl
Y Banana
e
A 6 0
AB 5 2
B
C 4 4
D C 3 6
E 0 D 12

E Product X

The Budget Line

Product Y

B
C
D

E Product X

The Indifference Curve


Budget Schedule for Apple and Banana

Indifference Schedule for Apple and Banana

Point Appl Banana


e
A 5 2
B 4 4
C 3 6

Apple

A
6
B
5
C
4
D
3
2
1 E
Banana
1 2 3 4 5 6 12
Apple
Point
A
B A
B
4 C 5
D C
E 3
2
1
Banana
1 2 3 4 5 6

Optimum Combination

Apple

6
5
4 C/B

3
2
1
Banana
1 2 3 4 5 6 12

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