Indifference curve analysis

                                    Indifference curve analysis

An indifference curve is a curve which shows different combinations of two commodities which gild equal satisfaction to the consumer.

  combination               commodity x                  commodity y

            A                                   1                                      20
            B                                   2                                      15
            C                                   3                                      11
            D                                   4                                      8
            E                                   5                                       6
            F                                    6                                      5


As we can see in this figure that when we increase the consumption of x the y commodity automatically decreases

assumption
1-consumer's behaviour is rational and he prefers only those combinations which give the maximum satisfaction.
2-The satisfaction received from the combination will be put is a systematic order by the consumer.
3-If the consumer increases the quantity of the consumption of one products, then he is ready to renounce or decrease the quantity of the second product in the same order

Characteristics of indifference curve

1-it is convexed towards origin due to law of diminishing marginal utility
2-indifference curve is inclined towards right because if one unit of commodity  increases other will decrease
3-indifference curve never intersect each other
4-indifference curve can be circular if the consumption is unlimited