AP MicroeconomicsMicroeconomic Theory
Indifference Curve
An indifference curve shows all combinations of two goods that give a consumer the same total satisfaction (utility).
Consumers are indifferent among points on the same curve. Curves farther from the origin represent higher utility. They slope downward and are bowed inward (convex) because of the diminishing marginal rate of substitution; the optimal bundle is where the budget line is tangent to the highest reachable curve.