The indifference curves approach has the following limitations:
a. Indifference curve analysis is only possible for 2 or at best for 3 goods.
b. It is almost impossible to practically derive indifference curves.
c. The consumer may not always behave rationally.
d. The consumer may not always realize the level of utility (ex-post) from consumption,
that she originally expected (ex-ante).
e. Indifference curve analysis can not help when one of the goods (X or Y) is a durable
good.
a. Indifference curve analysis is only possible for 2 or at best for 3 goods.
b. It is almost impossible to practically derive indifference curves.
c. The consumer may not always behave rationally.
d. The consumer may not always realize the level of utility (ex-post) from consumption,
that she originally expected (ex-ante).
e. Indifference curve analysis can not help when one of the goods (X or Y) is a durable
good.