Indifference Curves - Economics

rexthedog

New member
Joined
Jun 18, 2026
Messages
0
Reaction score
0
I am slightly unsure of the reasoning behind this answer:
Q: Which of the following is least likely correct?
A) For 2 consumers, A & B, the two corresponding indifference curves can intersect
B) For a given consumer, A, two indifference curves can not intersect because it would violate transistivity
C) For 2 consumers A & B, the two corresponding indifference curves cannot intersect because it would violate transistivity
My answer was A: I.C Curves cant intersect so surely this is leastb correct?
Correct answer: C - Isn’t this wrong? It’s saying its least likely that they cant intersect implying they can intersect?
Thanks
 
For a given investor, the indifference curves cannot intersect; however, curves from one investor can intersect those of another investor (unless they’re identical in their risk aversion, which is unlikely).
 
Back
Top