Explain why an indifference curve to the right shows higher utility level.
Dear Kunika,
An indifference curve(IC) shows different combination of two goods that gives equal level of satisfaction to a consumer. An IC to the right shows higher level of satisfaction as points on higher IC either shows more of one good with no less of the other or more of both goods. Such consumption bundles are more preferable to a consumer.
An indifference curve(IC) shows different combination of two goods that gives equal level of satisfaction to a consumer. An IC to the right shows higher level of satisfaction as points on higher IC either shows more of one good with no less of the other or more of both goods. Such consumption bundles are more preferable to a consumer.