Question

In: Economics

Transitivity implies that indifference curves cannot cross

 

Transitivity implies that indifference curves cannot cross

Solutions

Expert Solution

This statement is true because transitivity implies that consumer's preference are consistent.

For example: if he prefers bundle B to A and prefers bundle C to B, then we know he will prefer C to A.Yhe implication of transitivity assumption is that indifference curve can't intersect each other.


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