Question
Why do Indifference curves not intersect each other?
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Answer
- Two ICs cannot intersect each other. This property is proved by Contradict Method. First we assume that they intersect each other and then show that this assumption leads to an absurd conclusion. Let us assume that IC1, intersects IC2, at point E shown in the figure given here.
- Let point A be a point on IC1, and point B on IC2. Since A and E lie on IC1 the consumer will be indifferent De between points E and A (A = E). Similarly, B and E lie on IC2, the consumer will be indifferent between points E and B (B = E).
- Based on the assumption of transitivity as A = E and B = E, then the consumer must be indifferent between A and B (A = B) but this is not possible as A and B lie on two different ICs and represent different levels of satisfaction. Therefore, IC cannot intersect each other.
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