11. If two goods are perfect complements then the indifference curves will be L-shaped. 12. Indifference curves are typically numbered with the number increasing as more preferred bundles are consumed.13. Figure 4 : Robinson Crusoe's Maximisation Problem showing his budget line and indifference curve 14. Higher the indifference curve , higher is the level of utility derived by the manager. 15. In the figure, two indifference curves for a particular good X and wealth are given. 16. The negative slope of the indifference curve incorporates the willingness of the consumer to make trade offs. 17. In 1915, Eugen Slutsky derived a theory of consumer choice solely from properties of indifference curves . 18. The consumer will choose the indifference curve with the highest utility that is attainable within his budget constraint. 19. At the budget line B2 and the indifference curve I 4, the consumer will choose X '. 20. Hence the manager would try to be on the highest level of indifference curve possible given the constraints.
