Economics, 3rd Edition

Representing Indifference Curves Graphically

We can represent indifference curves graphically. The quantity of cola is on the vertical axis and the 

 quantity of pizza is on the horizontal axis. The graph is sometimes called an indifference map. The map 

contains an infinite number of indifference curves. Figure 5.6 shows two of the consumer’s many indif-

ference curves.

The points A, B and C on indifference curve I

1

 in Figure 5.6 all represent different combinations of 

cola and pizza. The consumer is indifferent between these combinations. However, indifference curve 

I

2

 is further to the right than curve I

1

 and given the assumption that more is preferred to less, the 

consumer would prefer to be on the highest indifference curve possible. Any point on I

2

, therefore, 

is preferred to any point on I

1

. Because the consumer prefers points on higher indifference curves, 

bundles of goods on higher indifference curves provide higher utility.

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CHAPTER 5  BACKGROUND TO DEMAND: THE THEORY OF CONSUMER CHOICE  109

We can use indifference curves to rank any two bundles of goods. For example, the indifference curves 

tell us that point D is preferred to point B because point D is on a higher indifference curve than point B. 

(That conclusion may be obvious, however,  because point D offers the consumer both more pizza and 

more cola.) The indifference curves also tell us that point D is preferred to point A because point D is on a 

higher indifference curve. Even though point D has less cola than point A, it has more than enough extra 

pizza to make the consumer prefer it. By seeing which point is on the higher indifference curve, we can 

use the set of indifference curves to rank any combinations of cola and pizza.