Indifference curves cannot cross because:
A) consumers will always substitute 1 unit of a good for 1 unit of another good.
B) consumers prefer more to less.
C) a single consumption bundle would bring two different levels of utility.
D) all of the above.
E) b and c

Question

Quizplus · Accepted Answer

Indifference curves represent combinations of goods that provide the same level of utility to the consumer. If two indifference curves were to cross, it would imply that a single consumption bundle could provide two different levels of utility, which is inconsistent with the theory. Additionally, the principle that consumers prefer more to less is fundamental to the concept of indifference curves, as it ensures that higher curves represent higher utility levels.

Indifference Curves Cannot Cross Because