Indifference curves never intersect each other due to:a)Different leve...
Indifference Curves cannot Intersect Each Other: The indifference curves cannot intersect each other. It is because at the point of tangency, the higher curve will give as much as of the two commodities as is given by the lower indifference curve.
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Indifference curves never intersect each other due to:a)Different leve...
Explanation:
Indifference curves are a graphical representation of different combinations of two goods that give a consumer the same level of satisfaction. The following are the reasons why indifference curves never intersect each other:
Different levels of satisfaction:
Indifference curves represent different levels of satisfaction. Therefore, if two indifference curves intersect, it means that they represent the same level of satisfaction, which is impossible.
Example: Suppose there are two indifference curves, IC1 and IC2. If they intersect each other, it means that the consumer is indifferent between the two combinations of goods represented by the intersection point. However, this is not possible because the consumer cannot be equally satisfied with two different combinations of goods.
Same levels of satisfaction:
If two indifference curves intersect, they represent the same level of satisfaction, which is not possible. Indifference curves must be distinct from each other to represent different levels of satisfaction.
Convex to origin:
Indifference curves are typically convex to the origin because consumers experience diminishing marginal utility as they consume more of a good. Therefore, they need to consume a higher amount of the other good to maintain the same level of satisfaction.
Concave to origin:
Indifference curves cannot be concave to the origin because it would violate the assumption of transitivity. If indifference curves were concave to the origin, it would be possible for a consumer to prefer a combination of goods that is worse than another combination.
Conclusion:
Indifference curves never intersect each other because they represent different levels of satisfaction, and it is impossible for a consumer to be equally satisfied with two different combinations of goods.
Indifference curves never intersect each other due to:a)Different leve...

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