CONSUME

R
BEHAVIOR
(Ordinal
RizqiApproach)
Anfanni Fahmi, SEI,
M.S.I.
 َ ِ‫ت ِم َن النِّ َساء َو ْالبَن‬
‫ين‬ ِ ‫اس ُحبُّ ال َّشهَ َوا‬ ِ َّ ‫ن‬ ‫ل‬ ِ ‫ل‬ ‫ن‬َ ِّ ‫ي‬‫ز‬ُ
َّ ِ‫ب َو ْالف‬
‫ ِة‬8‫ض‬ َّ ‫ط َر ِة ِم َن‬
ِ َ‫الذه‬ َ ‫ير ْال ُمقَن‬ ِ ‫اط‬
ِ َ ‫ن‬ َ ‫ق‬ ْ
‫ال‬ ‫َو‬
ُ ‫ك َمتَا‬
‫ع‬ َ ِ‫ث َذل‬ِ ‫َو ْال َخ ْي ِل ْال ُم َس َّو َم ِة َواَأل ْن َع ِام َو ْال َح ْر‬
‫ب‬ ِ ‫ْال َحيَا ِة ال ُّد ْنيَا َوهّللا ُ ِعن َدهُ ُح ْس ُن ْال َمآ‬
“Dijadikan indah pada (pandangan) manusia kecintaan
kepada apa-apa yang diingini, yaitu: wanita-wanita, anak-
anak, harta yang banyak dari jenis emas, perak, kuda
pilihan, binatang-binatang ternak dan sawah ladang.
Itulah kesenangan hidup di dunia, dan di sisi Allah-lah
tempat kembali yang baik (surga).”
(QS ‘Ali Imron 14)
 DEFINITION
INDIFERRENCE CURVE

A graph showing combination of two goods that give

the consumer equal utility/satisfaction

MARGINAL RATE OF SUBSTITUTION

The rate at which a consumer is ready to give up one

good in exchange for another good while maintaining
the same level of utility. 
 COMBINATION OF GORENGAN AND THAI TEA

COMBINATIO GORENGA THAI MARGINAL RATE OF

N OF GOODS N TEA SUBSTITUTION

A 12 1
(12-10)/(2-1) = 2/1 = 2
B 10 2
(10-7)/(4-2) = 3/2 = 1,5
C 7 4
(7-5)/(6-4) = 2/2 = 1
D 5 6
(5-3)/(9-6) = 2/3 = 0,7
E 3 9
(3-2)/(11-9) = 1/2 = 0,5
F 2 11
 INDIFFERENCE CURVE
GORENGAN AND THAI TEA
13
12
11
10
9
8
GORENGAN

7
6
5
4
3
2
1
0
0 1 2 3 4 5 6 7 8 9 10 11 12
THAI TEA
INDIFFERENCE CURVE CHARACTERISTIC

Higher indifference curves represent higher

levels of utility

Indifference curves slope down

They do not cross

They “bow inward”

Four Properties of Indifference Curves

• Property 1: Higher indifference curves are

preferred to lower ones.
• Consumers usually prefer more of something to less
of it.
• Higher indifference curves represent larger
quantities of goods than do lower indifference
curves.

Copyright©2004 South-Western
 Figure 2 The Consumer’s Preferences

Quantity
of Burger
C E

B D
I2
Indifference
A
curve, I1
0 Quantity
of Thai Tea
Copyright©2004 South-Western
Four Properties of Indifference Curves

• Property 2: Indifference curves are downward

sloping.
• A consumer is willing to give up one good only if
he or she gets more of the other good in order to
remain equally happy.
• If the quantity of one good is reduced, the quantity
of the other good must increase.
• For this reason, most indifference curves slope
downward.

Copyright©2004 South-Western
 Figure 2 The Consumer’s Preferences

Quantity
of Pepsi

Indifference
curve, I1
0 Quantity
of Pizza
Copyright©2004 South-Western
Four Properties of Indifference Curves

• Property 3: Indifference curves do not cross.

• Points A and B should make the consumer equally
happy.
• Points B and C should make the consumer equally
happy.
• This implies that A and C would make the consumer
equally happy.
• But C has more of both goods compared to A.

Copyright©2004 South-Western
 Figure 3 The Impossibility of Intersecting Indifference
Curves

Quantity
of Pepsi

0 Quantity
of Pizza
Copyright©2004 South-Western
Four Properties of Indifference Curves

• Property 4: Indifference curves are bowed

inward.
• People are more willing to trade away goods that
they have in abundance and less willing to trade
away goods of which they have little.
• These differences in a consumer’s marginal
substitution rates cause his or her indifference curve
to bow inward.

Copyright©2004 South-Western
 Figure 4 Bowed Indifference Curves

Quantity
of Pepsi

14

MRS = 6

A
8
1

4 B
MRS = 1
3
1
Indifference
curve

0 2 3 6 7 Quantity
of Pizza
Copyright©2004 South-Western
INDIFFERENCE CUVE MAP
INDONESIAN
CHOICE
The limits imposed on household choices
by income, wealth, and product prices.

S TR A I N T
CO N
 BUDGET = Rp 100.000,00
GORENGAN JUICE
@2.000 @5.000 TOTAL
COMBI
AMOUNT EXP AMOUNT EXP EXPENDITUR AVAILABLE
NATION
E

A 100.000 0 100.000 YES

B 80.000 20.000 100.000 YES

C 60.000 40.000 100.000 YES

D 40.000 60.000 100.000 YES

E 20.000 80.000 100.000 YES

F 0 100.000 100.000 YES

X 60.000 90.000 150.000 NO

Y NO
 BUDGET = Rp 100.000,00
GORENGAN JUICE
@2.000 @5.000 TOTAL
COMBI
AMOUNT EXP AMOUNT EXP EXPENDITUR AVAILABLE
NATION
E

A 50 100.000 0 0 100.000 YES

B 40 80.000 4 20.000 100.000 YES

C 30 60.000 8 40.000 100.000 YES

D 20 40.000 12 60.000 100.000 YES

E 10 20.000 16 80.000 100.000 YES

F 0 0 20 100.000 100.000 YES

X 30 60.000 18 90.000 150.000 NO

Y NO
 BUDGET CONSTRAINT
55
A
50
45
B
40
35
GORENGAN

C X
30
25
Y D
20
15
E
10
5
E
0
0 5 10 15 20 25 30 35 40 45 50
THAI TEA
 EFFECT OF PRICE CHANGE
COMBI GORENGAN THAI TEA THAI TEA TOTAL
NATIO @2.000 @10.000 @2.500 EXPENDITUR
N E
Q EXP Q EXP Q EXP

A 50 100.000 0 0 0 0 100.000

B 40 80.000 2 20.000 8 20.000 100.000

C 30 60.000 4 40.000 16 40.000 100.000

D 20 40.000 6 60.000 24 60.000 100.000

E 10 20.000 8 80.000 32 80.000 100.000

F 0 0 10 100.000 40 100.000 100.000

 EFFECT OF PRICE CHANGE CURVE
55 A
50
45
40
35
GORENGAN

30
25 Harga Turun

20
15
Harga Naik
10
5
C B D
0
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40
JUICE
 EFFECT OF INCOME CHANGE
BUDGET = 200.000
COMBI GORENGAN THAI TEA TOTAL
NATION @2.000 @5.000 EXPENDITURE
Q EXP Q EXP

A 100 0 200.000

B 75 10 200.000

C 50 20 200.000

D 25 30 200.000

E 10 36 200.000

F 0 40 200.000
EFFECT OF INCOME CHANGE
BUDGET = 200.000
COMBI GORENGAN THAI TEA TOTAL
NATION @2.000 @5.000 EXPENDITURE
Q EXP Q EXP

A 100 200.000 0 0 200.000

B 75 150.000 10 50.000 200.000

C 50 100.000 20 100.000 200.000

D 25 50.000 30 150.000 200.000

E 10 20.000 36 180.000 200.000

F 0 0 40 200.000 200.000
 EFFECT OF DECREASING INCOME
BUDGET = 80.000
COMBI GORENGAN THAI TEA TOTAL
NATION @2.000 @5.000 EXPENDITURE
Q EXP Q EXP

A 0 0 80.000

B 80.000

C 80.000

D 80.000

E 80.000

F 0 0 80.000
 EFFECT OF DECREASING INCOME
BUDGET = 80.000
COMBI GORENGAN THAI TEA TOTAL
NATION @2.000 @5.000 EXPENDITURE
Q EXP Q EXP

A 40 80.000 0 0 80.000

B 30 60.000 4 20.000 80.000

C 25 50.000 6 30.000 80.000

D 15 30.000 10 50.000 80.000

E 10 20.000 12 60.000 80.000

F 0 0 16 80.000 80.000
 EFFECT OF INCOME CHANGE
100 T
90
80
70
GORENGAN

60
50 R
PENDAPATAN
40P NAIK

30
20
10 PENDAPATAN
TURUN U
0 Q S
0 5 10 15 20 25 30 35 40
JUICE
 MAXIMUM UTILITY
55
50
45 A
B
40
35
The utility-maximizing combination will be the
GORENGAN

30
25
combination lying on the highest attainable
20
indifference
E curve
15
10 C

5 D
0
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40
JUICE
EFFECT OF PRICE AND INCOME CHANGE
SUBSTITUTION AND INCOME EFFECT
DERIVING INDIVIDUAL
DEMAND CURVE FROM
INDIFFERENCE CURVE
ANALYSIS
 INDIFERRENCE
55
50
A CURVE
45
40
35 E
GORENGAN

30
25 E1
E2
20
15
10
5
0 C D
0 2 4 6 8 10 12 14 16 18 20B 22 24 26 28 30 32 34 36 38 40
JUICE
 DEMAND CURVE
PRICE OF JUICE

P1 A

P B
P2 C

Q Q1 Q2
QUANTITIY OF
 PRICE OF JUICE

P
P2
P1

Q
A
B

Q1
C

Q2