Final answer:
An indifference curve represents tradeoffs between two goods, higher curves represent higher levels of utility, a budget-time constraint can be added with a budget line, and optimizing behavior can be represented by finding the tangency point between the highest indifference curve and the budget line.
Step-by-step explanation:
An indifference curve is a graphical representation of the tradeoffs between two goods on a budget constraint diagram. All points along a single indifference curve provide the same level of utility. Higher indifference curves represent higher levels of utility.
To add a budget-time constraint, you can incorporate a budget line onto the diagram. The budget line shows the different combinations of the two goods that can be purchased with a given budget and prices of the goods. The area under and on the budget line represents all the possible combinations that can be afforded within the budget constraint.
To represent optimizing behavior, you can show the individual's optimal choice by finding the point where the highest indifference curve is tangent to the budget line. This point represents the combination of goods that maximizes utility subject to the budget constraint.