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Explain why well-behaved indifference curves cannot intersect.

Explain why well-behaved indifference curves cannot intersect.

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Answer #1

The indifference curve shows a combination of two goods that a consumer can consume and it provides the same level of satisfaction on each point of the indifference curve.

Indifference curve does not cut or intersect each other, it is because if they cut each other the result will be a paradox (Contradict). For example, on IC1there are two points A and B. Therefore by definition of indifference curve A = B because they give the same level of satisfaction. On IC2 there are two points B and C, so again by the definition B = C. Similarly, if this is the case then A = C because they should technically provide the same level of satisfaction but A is on higher indifference curve and C is on the lower indifference curve. So, they contradict each other. That is why the indifference curve does not cut each other. As shown below:

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