Figure 3.1.3
-Refer to Figure 3.1.3 above. The way in which the indifference curves are drawn in this figure:
A) represents a unique case in which two different indifference curves offer the same level of utility.
B) compares three market baskets that yield the same level of utility.
C) violates the principle of transitivity in the model of consumer behavior.
D) represents the usual way in which indifference curves appear on an indifference map.

Question

Figure 3.1.3
-Refer to Figure 3.1.3 above. The way in which the indifference curves are drawn in this figure:
A) represents a unique case in which two different indifference curves offer the same level of utility. 
B) compares three market baskets that yield the same level of utility. 
C) violates the principle of transitivity in the model of consumer behavior. 
D) represents the usual way in which indifference curves appear on an indifference map.

Quizplus · Accepted Answer

Indifference curves should not intersect because each curve represents a different level of utility. If two indifference curves were to intersect, it would imply that a single bundle of goods could provide two different levels of utility, which violates the principle of transitivity.

Figure 3.1.3 -Refer to Figure 3.1.3 Above. the Way in Which the Which