An indifference curve is a locus of combination of points that shows all the possible combinations of two goods which give him the same level of satisfaction. All the combinations between which a person is indifferent( that’s why its called indifference curves).
Also, we can say that when the problem of choice arises, the consumer ranks all such combinations of the same 2 goods at the same level.
An Indifference Schedule
| Combinations | Units of A | Units of B |
|
| A | 12 | 2 | |
| B | 6 | 4 | |
| C | 4 | 6 | |
| D | 3 | 8 |
Drawing the above table on a graph would give the following curve, Which we call indifference curve.
· Kindly remember when we talk about indifference curve, we are concerned with utility(satisfaction) only, not price.
· In Indifference curve IC1, all the points A,B, C and D provides the consumer same level of satisfaction. So, he can choose either of 4 .He is indifferent to any point on the curve IC1. All points provide him the same level of satisfaction
**An important point to remember is that the use of an indifference curve does not try to put a physical measure onto how much utility a person receives.
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