What does a higher indifference curve indicate for a consumer?

A higher indifference curve represents a higher level of utility or satisfaction for a consumer. This occurs because each curve on the indifference map reflects different combinations of two goods that provide the same level of satisfaction. As we move to higher indifference curves, the combinations of goods yield greater overall utility, indicating that the consumer has access to more of the goods or higher quantities that contribute to their satisfaction.

In this context, when a consumer is on a higher indifference curve, it means they are able to consume more goods or a better mix of goods that they prefer, which corresponds directly to increased satisfaction. This is a fundamental concept in consumer theory that illustrates the trade-offs consumers make when trying to maximize their utility given their budget constraints.