Indifference curves represent combinations of goods that provide the same level of satisfaction or utility to a consumer. They are based on the theory developed by JR Hicks in his 1939 book Value and Capital and 1956 revision of demand theory. An indifference curve graphs the locus of combinations of two goods between which a consumer is indifferent, meaning they provide equal preference and satisfaction.

1. INDIFFERENCE CURVE
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2. INDIFFERENCE CURVE THEORY
• Propounded by JR Hicks
• Through his famous book Value and capital
• Published in 1939
• Its major revision in his famous book
• A revision of demand theory in 1956

3. DEFINITION
• An indifference curve(IC) is the locus of two goods which
give the same level of satisfaction to the consumer.
• Thus consumer is indifferent towards all the combinations
lying on the same indifference curve.
• In other words, consumer gives equal preference to all
such combinations

4. ASSUMPTION
• • Rational behaviour of the consumer
• • Utility is ordinal
• There are two goods X and Y
• Taste , preference, Income remain the same
• • Consumer possess complete information about prices of goods in the market
• • Transitivity in choice making
• • Utility is the function of quantity of the commodities.

5. INDIFFERENCE SCHEDULE

7. PROPERTIES OF INDIFFERENCE CURVE