Indifference Curve analysis Indifference Curve GoodY A curve that defines the combinations of2 or more goods that give a consumer the same level of satisfaction Marginal rate of Substitution The rate at which a consumer is willing to substitute one good for another and stay at the same satisfaction leve GoodⅩ Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Indifference Curve Analysis Indifference Curve  A curve that defines the combinations of 2 or more goods that give a consumer the same level of satisfaction. Marginal Rate of Substitution  The rate at which a consumer is willing to substitute one good for another and stay at the same satisfaction level. I. II. III. Good Y Good X