The higher the indifference, the higher utility compared to indifference curves below it. The first example of indifference map showed in the adjacent graph is the most common representation. 13 Non Monotonic Indifference Curves Good 2 Bad 1 One good and one bad a positively sloped indifference curve. Shape of an Indifference Curve. example. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility. It is assumed that consumers are more satisfied when buying goods on a high indifference curve. Lines: Two Point Form. One kind of economic good is placed on each axis. The indifference curve Um has four points labeled on it: A, B, C, and D (see Figure 1). – Carrie Nation was a prominent leader in the temperance movement. – W. C. Fields was a movie actor with a legendary drinking problem. Examples of Indifference Curves Indifference curves are graphs that represent various combinations of two commodities which an individual considers equally valuable. Examples. It shows four convex indifference curves (red), showing each curve what amount of a good or bundle of goods x 1 the consumer has to give up in order to be able to consume more goods, or bundles of goods, x … Parabolas: Standard Form. An indifference curve is a contour line where utility remains constant across all points on the line. A graph of indifference curves for several utility levels of an individual consumer is called an indifference map. This is an important and obvious feature of indifference curves. An indifference curve is functional under many assumptions, that is, each indifference curve starts as a convex structure from the origin, and there is no intersection between any pair of indifference curves. Examples of Indifference Curves Third Example • Indifference curves between Bourbon and Temperance Lectures for W.C. Fields and Carrie Nation. Each point on an indifference curve represents a consumption bundle, and the consumer is indifferent among all consumption bundles on the indifference curve. The Following Example Helps Illustrate This: Indifference curves are plotted on a graph according to a system of equations, and according to Investopedia, "Standard indifference curve analysis operates on a simple two-dimensional graph. Lines: Point Slope Form. Lines: Slope Intercept Form. Indifference curves are drawn based on the consumer's presumed indifference. In our example, the consumer yields 250 utils. Parabolas: Vertex Form. indifference curve. Constructing an Indifference Curve . The axes of those graphs represent one commodity each (e.g., good A and good B). example. example. For example, IC3 has a higher utility than IC2 and IC2 has a higher utility than IC1. 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