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In the state of Wisconsin during the month of February it can easily reach below zero on any given day. During this time period Johnny M is trying to sleep in an alley behind some businesses. The temperature is reaching 20 degrees below zero, and Johnny realizes that he is about to freeze to death unless he gets inside a warm building. He sees a back door to one of the businesses and breaks it open. Johnny is able to get warm and he sleeps just inside this store. In the morning, the owner comes to the store and finds Johnny and the broken door. The owner calls the police.
Indifference Analysis
A microeconomic tool used to analyze consumer preferences indicating combinations of goods among which the consumer is indifferent, showing levels of utility.
Numerically Measurable
Quantifiable or capable of being expressed or measured in numerical terms.
Indifference Curve
A graph showing different bundles of goods between which a consumer is indifferent, indicating the combinations provide the same level of utility to the consumer.
Total Utility
The total satisfaction received from consuming a certain quantity of goods or services.
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