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Help with economics indifference curves

I'm struggling with economics and I am trying to draw 3 indifference curves here at optimal consumption. The red line is meant to be an equal amount of sustainable and fast fashion, the blue line is meant to be a higher consumption of fast fashion over sustainable fashion and it is steep as the MRS would be high and then the red line is meant to be higher consumption of sustainable fashion over fast fashion and it is shallow as the MRS would be low. Obviously I haven't added labels on yet I just wanted to check if I have done this correctly as I'm quite confused on the topic. Thanks.
(edited 2 years ago)
Original post by Jsimons56
I'm struggling with economics and I am trying to draw 3 indifference curves here at optimal consumption. The red line is meant to be an equal amount of sustainable and fast fashion, the blue line is meant to be a higher consumption of fast fashion over sustainable fashion and it is steep as the MRS would be high and then the red line is meant to be higher consumption of sustainable fashion over fast fashion and it is shallow as the MRS would be low. Obviously I haven't added labels on yet I just wanted to check if I have done this correctly as I'm quite confused on the topic. Thanks.

It's not my area of expertise, but if I remember my material correctly, you could do with 1 IC, and then have 3 budget constraints with varying steepness. In this case, the gradient of the budget line determines the preference.

If you want to draw the ICs the way you did, you would probably want to skew the lines in such a way that your budget constraint will end up with more units of the preferred product. So if the outcome is a preference for sustainable clothing, you want your curve to be as vertical as possible, so the budget line will hit the y axis higher up than it would the x axis to the right. If the outcome is a preference for fast fashion, you want yout curve to be as horizontal as possible, so the budget line will hit the x axis further to the right than it would the y axis further up.
Reply 2
Original post by MindMax2000
It's not my area of expertise, but if I remember my material correctly, you could do with 1 IC, and then have 3 budget constraints with varying steepness. In this case, the gradient of the budget line determines the preference.

If you want to draw the ICs the way you did, you would probably want to skew the lines in such a way that your budget constraint will end up with more units of the preferred product. So if the outcome is a preference for sustainable clothing, you want your curve to be as vertical as possible, so the budget line will hit the y axis higher up than it would the x axis to the right. If the outcome is a preference for fast fashion, you want yout curve to be as horizontal as possible, so the budget line will hit the x axis further to the right than it would the y axis further up.

Hi thanks for your reply however I am still confused. I still want to draw the ICs the way I have with one budget constraint and multiple ICs. What I am trying to show is 3 indifference curves along a budget constraint, one where the consumption of the 2 goods is equal, one where the fast fashion is consumed more and one where sustainable fashion is consumed more.
Original post by Jsimons56
Hi thanks for your reply however I am still confused. I still want to draw the ICs the way I have with one budget constraint and multiple ICs. What I am trying to show is 3 indifference curves along a budget constraint, one where the consumption of the 2 goods is equal, one where the fast fashion is consumed more and one where sustainable fashion is consumed more.

Then you might want to refer to the second paragraph in my previous response.

Start with the end in mind.
If you want to show an IC with a preference for sustainable fashion, you either want the curve to be as steep as possible, or to the right as possible.
If you want to show an IC with a preference for fast fashion, you either want the curve to be as shallow as possible, or to the left as possible.
From what you have done, I think you got the curves for sustainable fashion and fast fashions mixed up. However, that's just my opinion though.
Reply 4
Original post by MindMax2000
Then you might want to refer to the second paragraph in my previous response.

Start with the end in mind.
If you want to show an IC with a preference for sustainable fashion, you either want the curve to be as steep as possible, or to the right as possible.
If you want to show an IC with a preference for fast fashion, you either want the curve to be as shallow as possible, or to the left as possible.
From what you have done, I think you got the curves for sustainable fashion and fast fashions mixed up. However, that's just my opinion though.

I don't understand why the curve with a preference for fast fashion would be towards the left because then there would be only sustainable clothing being consumed? and vice versa
Original post by Jsimons56
I don't understand why the curve with a preference for fast fashion would be towards the left because then there would be only sustainable clothing being consumed? and vice versa

The point in drawing the IC is to show for any given budget, you want to have more of the product you want. If you have a preference for fast fashion (x axis), you want to show for the given budget that you end up with more fast fashion than you do with sustainable fashion. You will need to draw a few ICs out for a single preference and move the budget constraint about to see this effect.

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