Indifference curves that intersect are said to be:
A)irrational.
B)non-transitive.
C)inconsistent with our basic assumptions about preferences.
D)complete, but not consistent.

Question

Quizplus · Accepted Answer

Indifference curves that intersect violate the assumption of consistency in consumer preferences, which states that if a consumer prefers bundle A over bundle B, and prefers bundle B over bundle C, then the consumer should prefer bundle A over bundle C. Intersecting indifference curves imply that a consumer is indifferent between bundles at one point and then reverses preferences at another point, which is inconsistent with our basic assumptions about preferences.

Indifference Curves That Intersect Are Said to Be