a Standard model of a Trading Economy Indifference curves Each traces a set of combinations of cloth(C)and food (F consumption that leave the individual equally well off They have three properties Downward sloping The farther up and to the right each lies, the higher the level of welfare to which it corresponds Each gets flatter as we move to the right Copyright C 2003 Pearson Education, Inc Slide 5-10Copyright © 2003 Pearson Education, Inc. Slide 5-10 • Indifference curves – Each traces a set of combinations of cloth (C) and food (F) consumption that leave the individual equally well off – They have three properties: – Downward sloping – The farther up and to the right each lies, the higher the level of welfare to which it corresponds – Each gets flatter as we move to the right A Standard Model of a Trading Economy