What is the importance of indifference curves?

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  • Indifference Curve is used in Ordinal Approach to calculate Utility.Indifference Curve is the locus of point showing the combination of two goods in which the consumer is indifferent.The main features are-
    1.Convex in Nature.
    2.Downward Sloping due to Marginal Rate of Transformation.
    3.Higher Indifference Curve shows higher satisfaction.
    4.Indifference Curves never intersect.

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