FIGURE APX-1 AN INDIFFERENCE CURVE
All of the different possible combinations lying on the indifference curve I0 represent bundles of goods to which you are indifferent—each of these combinations is equally satisfying to you. But compare the combination represented by point b and the combination at point f. Which would you prefer? Point f, of course, because you get more. All points upward and to the right are preferred to all points on indifference curve I0.