Household Demand: Indifference

The trouble with cardinal utility is we can't put numbers to it.

However, if we look at in a slightly different way, by asking how we feel about the combination of two items, we can put some interesting numbers to it.

Indifference curves compare our feelings about combinations of two items.  Under our assumptions, we would always want to move from line a to line b but anywhere along line a or be, we don't care: we're indifferent

bowed