Question

If you got multiple job offer and you are deciding to take an offer depending on the income and crime in the area that you move to because of that job offer. What is the indifference curve between Income and crime?

Answer 1

The indifferènce curve between income and crime will come out to be an upward sloping curve.

This is because crime is a bad good for the individual. He wants less and less of crime. On the other hand, income is good for the individual. More and more of income will give the individual more level of satisfaction.

Now, consumer will be indifferent between both the goods only when more and more of crime is compensated by more and more of income. The bundle with lesser crime and more income will be prefered by the individual and he cannot be indifferent then.

Thus, the only indifference curve possible is the upward sloping indifference curve.

The individual will take up the job only if he gets more and more income to tolerate more and more crime.