Indifference curve

An indifference curve represents a set of different combinations of two goods or services that provide a consumer with the same level of satisfaction or utility. Imagine you enjoy both coffee and tea; an indifference curve illustrates how much of each you would be willing to trade off without changing your overall happiness. The curve shows your preferences, helping analysts understand consumer choice and behavior. In economics, it helps explain how individuals make decisions about spending their resources when faced with different options.