Question

How can you tell which indifference curves represent higher or lower levels of utility?

Short answer

Higher IC gives higher satisfaction.

Step-by-step solution

Step 1. Meaning of indifference curve

Indifference curve shows a combination of two goods that gives a consumer equal satisfaction and utility.

Step 2. Reason

On a indifference map,a higher indifference curve represents those combinations which yield higher level of satisfaction tan combination on lower indifference curve.