The assumption of transitive preferences implies that indifference curves must:
A) not cross one another.
B) have a positive slope.
C) be L-shaped.
D) be convex to the origin.
E) all of the above

Question

Quizplus · Accepted Answer

The assumption of transitive preferences means that if a consumer prefers A to B and B to C, then they must prefer A to C. If indifference curves crossed, it would violate this transitive property as it would imply that the consumer is indifferent between two bundles that are not equally preferred. Therefore, indifference curves must not cross one another. The other choices (B-D) are not necessarily implied by the assumption of transitive preferences.

The Assumption of Transitive Preferences Implies That Indifference Curves Must