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Why do indifference curves not intersect each other?

Why do indifference curves not intersect each other?

(तटस्थ वक्ररेखाहरू एकआपसमा किन काटिदैनन् ?)

Solution

An indifference curve is the locus of combinations of two goods that give the consumer the same level of satisfaction, and a higher curve always shows higher satisfaction. If two indifference curves cut each other, one point would have to show two different levels of satisfaction, which is impossible. So indifference curves never intersect, as the figure shows.

Two indifference curves cannot intersect each other
  • Proof by contradiction: suppose IC1 and IC2 intersect at C. Points A and C lie on IC2, so A = C in satisfaction. Points B and C lie on IC1, so B = C. It would follow that A = B.
  • Why that is impossible: A has the same amount of X as B but more of Y, so by the non-satiety assumption (more is preferred to less), A must give more satisfaction than B. A cannot both equal B and exceed it, so indifference curves can never intersect.

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