Indifference curve analysis examines how consumers make choices between products based on their preferences. Indifference curves represent combinations of products that provide the same level of satisfaction to a consumer. The slope of an indifference curve is determined by the marginal rate of substitution between the products. The budget line shows the combinations of products a consumer can afford based on prices and income. Consumers maximize their utility by choosing the highest indifference curve that is tangent to their budget line. Changes in prices and income shift the budget line, affecting the optimal combination of products. The substitution and income effects of such changes determine whether demand for a product increases or decreases.