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Figure 4.11 The Same Consumer Can Have Indifference Curves with Different Shapes
Indifference curves for a consumer can take on a variety of shapes, depending on the utility level. For example, at low levels of utility, bananas and strawberries may be substitutes and the consumer may just want to buy something to give her calories, not caring whether it is a banana or a strawberry. This means that the indifference curve will be close to linear, as is the case of UA. But, at higher levels of utility, the consumer may prefer a variety of fruit. This means that she will be willing to give up many bananas for another strawberry when she has a lot of bananas, but is not willing to do so when she only has a few bananas. Here, the consumer’s indifference curve will have more curvature, such as UB.