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in Consumers Equilibrium by (63.7k points)

How do we prove that a higher IC offers a higher level of satisfaction?

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Point B is on IC1 and point G is on IC2.
At B, a consumer gets OA, OS combination (or bundles) of goods.
At C, a consumer gets OA, OT combination of goods.

Certainly OT > OS. Implying that at C a consumer gets more of Good-1 and the same amount of Good-2 as at B. We know according to his monotonic preferences, a rational consumer gets more satisfaction from more of good. Accordingly, C on IC2 (or any other point on IC2) must offer the consumer greater satisfaction than B on IC1 (or any other point on IC1). Hence, it is proved that a higher IC implies a higher level of satisfaction.

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