This indifference curve shows combinations of food and clothing that
yield equal utility and between which Hugh is indifferent. The smooth
curve through the points is an indifference curve; all combinations on it
give Hugh equal utility. Point g above the curve is a preferred
combination to any point on the curve; point h below the curve is an
inferior combination to any point on the curve. The slope of the line
gives the marginal rate of substitution at point b. Moving down the
indifference curve from b to f, the slope flattens, showing that the more
food and the less clothing Hugh has, the less willing he is to sacrifice
further clothing to get more food.
Of course, there are combinations of the two products other than those
enumerated in the table that will give Hugh the same level of utility. All
of these combinations are shown in Figure 6A-1 by the smooth curve
that passes through the points plotted from the table. This curve, called
an indifference curve, shows all combinations of products that yield Hugh
the same utility.
The consumer is indifferent between the combinations indicated by any two points on one
indifference curve.