Explain why indifference curves cannot intersect one another

Expert Solution

Indifference curve is the graphical presentation of an indifference set of a consumer.An indifference set is a set of all those combinations of two goods which offer the consumer the same level of satisfaction and so the consumer is indifferent across all combinations of goods.Each combination on an indifference curve yield the same level of satisfaction.We know that higher indifference curve offers a higher level of satisfaction.See the diagram below:In the above diagram,A and C points on the IC would offer the same level of satisfaction and the points B and D offer the same level of satisfaction.But if they intersect each other we woulod get contradicting results from this as point C is a point on higher IC,so it should always offer higher satisfaction than point D but after intersection they would must be equal at a point which means that both ICs would offer same level of satisfaction.This is not possible as per the laws of economics and is quite contradicting.

Rahul Sunny answered 2 years ago

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