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

Higher indifference curve respresent higher level of satisfaction of t

1.	Higher indifference curve respresent higher level of satisfaction of the consumer'. Explain the statement. Also state the underlying assumption related to this property of indifference curve.
Answer» Solution : The consumer derives more satisfaction from the COMBINATION of two GOODS on a higher indifference curve because more units of both the commodities are used that will surely be more satisfying than the LOWER quantity combinations. The underlying assumption here is the assumption of MONOTONIC preference which represents that a consumer will prefer a combination which contains more of at least one and no less of the other.