Higher indifference curve represents higher level of satisfaction to the consumer'. Explain The statement also state the underlying assumption related to this property of indifference curve

Higher indifference curve represents higher level of satisfaction to t

1.	Higher indifference curve represents higher level of satisfaction to the consumer'. Explain The statement also state the underlying assumption related to this property of indifference curve
Answer» Solution :Higher indifference CURVE represents higher level of satisfaction. In other words, any combination of goods which lie on a higher indifference curve represents higherlevel of satisfaction as consumer is able to buy more of goods on a higher IC. In the diagram Bgt A as consumer is able to buy more of `IC_2` both the goods on as COMPARED to `IC_1` The underlying assumption is Monotonic Preference i.e., a consumer prefers a combination which contains more of Good at least one good and no less of the other good.