Indifference curve analysis is based on the ordinal approach.

Explanation:
Indifference curve analysis is a graphical representation of consumer preferences over different combinations of two goods. The consumer is assumed to be rational and seeks to maximize his satisfaction or utility. The basic idea behind the indifference curve analysis is that the consumer can be equally satisfied with different combinations of two goods, provided they give him the same level of satisfaction or utility.

The ordinal approach is based on the following assumptions:

1. Consumer preferences are transitive, i.e. if the consumer prefers bundle A to bundle B and bundle B to bundle C, then he must prefer bundle A to bundle C.
2. Consumer preferences are complete, i.e. the consumer is able to rank all the possible bundles of goods.
3. Consumer preferences are non-satiated, i.e. more is always preferred to less.

The indifference curve analysis is based on the ordinal approach because it does not measure the level of satisfaction or utility in quantitative terms. Instead, it ranks the different combinations of goods in order of preference. The consumer is assumed to be able to compare the different combinations of goods and rank them in order of preference. The indifference curves represent the different combinations of goods that give the consumer the same level of satisfaction or utility.

Therefore, the indifference curve analysis is based on the ordinal approach, which is concerned with the ranking of preferences rather than the measurement of utility in quantitative terms.

Ordinal