Description 
Max, standing before the Ostrich Burger 
counter, sees two choices on the menu--
Ostrich burgers and Ostrich nuggets. Max 
likes both, and he realizes that there are 
numerous combinations of burgers and 
nuggets he could consume. 

Dialogue 

Narrator:  
Max derives different levels of utility from different combinations of O-Burgers and O-Nuggets.  Max received equal utility from the first special that has 4 burgers and 2 nuggets...and the second special that has 2 burgers and 4 nuggets. 

Narrator:  
In other words, Max was indifferent between the 2 specials.  We can plot more points that represent combinations of burgers and nuggets that give Max the same utility as specials one and two.  The resulting curve is a line of constant utility. This is known as an indifference curve and it represents all combinations of two goods from which the consumer derives the same level of utility. Other indifference curves represent different levels of utility. 

Narrator: 
Since Max preferred Special number 4 over Specials one and two… 

Narrator: 
…Special number 4 must lie on a higher indifference curve.  Likewise, since Max preferred specials 1 and 2… 

Narrator: 
…over special number 3, special 3 must lie on a lower indifference curve. 
 
--End--           Back