Question

Explain why well-behaved indifference curves cannot intersect.

Answer 1

Ans. Cosider the indifference curve IC1 and IC2. Indifference curves represent each bundle of two goods that gives the consumer same level of utility. Let IC1 represents utility of U1 and IC2 represents utility of U2.

Suppose IC1 and IC2 intersect at bundle of goods, A. Point A on IC1 represents a utility of U1 while the same point A also lies on IC2, so, it represents a utility of U2 but same bundle of goods (A) cannot give the consumers two different utilities i.e. U1 and U2. Thus, well behaved indifference curves cannot intersect.

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