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 indifferen
t—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.