On a graph we draw indifference curves to illustrate Steven's preferences for steak and broccoli. If two of Steven's indifference curves cross, then it cannot be the case that Steven
A)regards steak and broccoli as complements.
B)spends more of his income on steak than on broccoli.
C)likes steak and likes broccoli.
D)always prefers more steak to less steak and more broccoli to less broccoli.

Question

Quizplus · Accepted Answer

Indifference curves represent combinations of goods that provide the same level of utility. If they cross, it violates the assumption of transitivity, which is a fundamental property of rational preferences. This means Steven cannot consistently prefer more of both goods, as crossing curves would imply inconsistent preferences.

On a Graph We Draw Indifference Curves to Illustrate Steven's