CBSE Class 12-commerce Answered

Movement along the same indifference curve shows various bundles of two goods that provide equal satisfaction to the consumer. This signifies that to have the same level of satisfaction the consumer must sacrifice units of one good if he wishes to consume more units of the other good so that total utility remains the same. 

A consumer will shift from a lower indifference curve to a higher indifference curve when he/she wants to have a new bundle of the two goods, which has more quantity of at least one good and no less of the other good (monotonic preference). Alternatively, the new bundle may offer more quantity of both the goods, thereby providing the consumer greater level of satisfaction. Higher IC represents higher level of satisfaction.