Indifference curves are graphical representations used in economics to illustrate consumer preferences. Each curve shows combinations of two goods that provide the same level of satisfaction or utility to the consumer. The further away a curve is from the origin, the higher the level of utility it represents. These curves help analyze how consumers make choices between different goods, such as apples and oranges. They demonstrate that as a consumer substitutes one good for another, they remain equally satisfied, highlighting the trade-offs involved in consumption decisions.