The rule that indifference curves cannot cross each other follows from
A) both the transitivity and nonsatiation assumptions
B) the nonsatiation assumption only
C) both the selfishness and nonsatiation assumptions

Question

Quizplus · Accepted Answer

The rule that indifference curves cannot cross each other is a consequence of the transitivity and nonsatiation assumptions. Transitivity ensures that if a consumer prefers bundle A to bundle B and prefers bundle B to bundle C, then the consumer also prefers A to C, which helps maintain the consistency of preferences and prevents indifference curves from crossing. Nonsatiation, or the assumption that more of a good is always preferred to less, ensures that indifference curves slope downwards, further supporting the principle that they cannot cross since crossing would imply inconsistent preferences.

The Rule That Indifference Curves Cannot Cross Each Other Follows