What are the factors that affect indifference curve?

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1126089

2026-04-24 12:25

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Indifference curves are affected by several factors, including the consumer's preferences, the availability of goods, and the substitution effects between different goods. Changes in income can shift the curves outward or inward, reflecting the consumer's purchasing power. Additionally, the shape of the indifference curve can vary based on the degree of substitutability between the goods, which can be influenced by individual tastes and the nature of the goods themselves.

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