Each level of utility has a separate indifference curve. Because we assume that more is preferred to less, an indifference curve lying to the right and above another indifference curve reflects a higher level of utility. In this graph, the combinations along curve U₂ provide Michaela with a higher level of utility than the combinations along curve U₁. Michaela will be happier with a 1,000-square-foot apartment than a 500-square-foot apartment, holding the number of friends living in her building equal at 5.