The transitivity assumption implies that:
A)indifference curves measure preferences.
B)indifference curves are convex.
C)indifference curves never cross.
D)indifference curves are smooth.

Question

Quizplus · Accepted Answer

The transitivity assumption implies that if a consumer prefers option A to option B, and option B to option C, then they must also prefer option A to option C. This assumption is violated if indifference curves cross each other, so C is the correct answer. The other choices are properties of indifference curves, but they are not directly related to the transitivity assumption.

The Transitivity Assumption Implies That