represents one level of utility. First we will explore the meaning of one particular indifference curve and then

we will look at the indifference curves as a group.

FIGURE B1 Lilly’s Indifference Curves Lilly would receive equal utility from all points on a given indifference curve.

Any points on the highest indifference curve Uh, like F, provide greater utility than any points like A, B, C, and D on

the middle indifference curve Um. Similarly, any points on the middle indifference curve Um provide greater utility

than any points on the lowest indifference curve Ul.

The Shape of an Indifference Curve
520 B • Indifference Curves

The indifference curve Um has four points labeled on it: A, B, C, and D. Since an indifference curve represents

a set of choices that have the same level of utility, Lilly must receive an equal amount of utility, judged

according to her personal preferences, from two books and 120 doughnuts (point A), from three books and 84
{"file_size_mb": 26.99, "upload_timestamp": "2026-02-07T15:37:44.339247", "file_name": "Microeconomics3e.pdf", "title": "Principles of Microeconomics 3e", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "total_pages": 597, "creationdate": "2022-12-07T14:15:44-06:00", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "uploaded_via": "batch_uploader", "batch_upload": true, "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "creator": "PDFMiner", "moddate": "2022-12-07T14:23:05-06:00", "producer": "Prince 14.2 (www.princexml.com)", "file_type": ".pdf"}