Question

Two indifference curves cannot touch or intersect each other explain why

Answer 1

Intersection of two indifference curves showing different levels of fulfillment is a logical contradiction. It would mean that indifference  curves showing different levels of satisfaction are representing the same level of satisfaction at the point of  contact or intersection.  

we can prove this by the following:- (please refer the attachment.)

Assume, two indifference curves 1C1 and 1C2 meet in Fig (a), intersect in Fig.  (b) and touch in  Fig. (c)  each other at point 'A' in Fig.

Point 'C' is taken just above point 'B' and let it have same amount of commodity 'X' and more amount of commodity' Y'.

Now consider points 'B' and 'A' on IC1.

Consumer is indifferent between these points, as both lie on the same indifference curve 1C.

Also  points 'A' and 'C lie on the same indifference curve IC implying same level of satisfaction to the consumer.

This shows that  points 'B' and 'C' yield same level of satisfaction to the consumer.

But, point 'C' lies on a higher indifference curve having more amount of commodity' Y'. 

It must be given to point 'B' by the assumption of non-satiety.

Also, intersection of two indifference curves breaks the assumption of positive marginal  utilities of the two commodity.

In Fig., intersection of IC1 and IC2means additional amount of BC has zero utility.

Therefore, indifference curves can never intersect or touch each 

522d4c47a8b45a7525a2e8966fdb6c20.docx

Answer 2

Answer:

Explain why two indifference curves cannot touch each other.