Question

Explain why two indifference curve never intersect each other

Answer 1

Answer:

Indifference curves cannot intersect each other as it would break down the indifference curve analysis. This is because the consumer would have more than one point on the indifference curve giving him a different level of satisfaction.

Explanation:

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Answer 2

Have a look at the image attached below.

Points B and F are on the same curve, IC1. Now we know any point on the indifference curve gives equal satisfaction. So B = S.

Now again, when you see IC2, points B and S are on it and both points show equal satisfaction. So again, B = F.

Now, if you were considering this mathematically, you could say S = F.

But if you notice properly, the consumption of good Y at S and the consumption of good Y at F are both different. They're at different levels.

The consumption of good Y at S is greater when compared to the consumption of good Y at F. This could imply that S offers more satisfaction than F.

Hence they don't intersect.