An indifference curve is a graph of bundles of goods which give the same level of satisfaction or utility to some consumer; in other words, a set of point for which a particular consumer is indifferent. Indifference curves may be as unique as fingerprints, so if no indifference curve you see here fits your preferences, that's ok. We're sure people still like you.

   We typically suppose that most consumers are at a consumption level such that "more is better." If so, that means that points lying up and to the right always yield greater satisfaction. The red arrow shows the direction of more desirable consumption bundles.

Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved