what is indifference curve analysis 
indifference curve analysis operates on a simple two dimensional graph each axis represents one type of economic good the consumer is indifferent between any of the combinations of goods represented by points on the indifference curve because these combinations provide the same level of utility to the consumer indifference curves are heuristic devices used in contemporary microeconomics to demonstrate consumer preference and the limitations of a budget the bottom linefor economic and financial planning reasons it s critical that various entities understand how consumers may substitute one good for other this concept called marginal rate of substitution measures the relationship between two products and how likely a consumer is to buy one in the place of the other this information is useful in setting manufacturing levels or gauging public policy 