**why can t indifference curves intersect** This is a topic that many people are looking for. **accountabilitynowpac.com** is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, ** accountabilitynowpac.com ** would like to introduce to you **Why Indifference Curves Can't Cross **. Following along are instructions in the video below:

“We introduce the concept of indifference curves. We said that they have a number of of properties always when we re talking about two economic goods as opposed to economic indifference curves slope downwards they tend to be bowed into the origin and one of the other things that we said is that indifference curves are generally parallel or concentric in a way such as what you see here and specifically that they don t cross. So. Let s think for a second mathematically about why it doesn t make sense for indifference curves to cross so you see what i ve done here is i just drew a couple of indifference curves they look similar to the indifference curves here with the important distinction that these guys cross so that we could think about why this doesn t make sense or why this gets us to some contradiction with some of the other assumptions that we ve made so to think about this.

What i can do is i can start by labeling actually three points on these indifference curves the first one i m going to label. It called point a is the point of intersection between the two curves. The second point that i m going to label. It s call it point b.

It s just a point. It s a randomly chosen point somewhere on the first indifference curve which i called ic one and then point c again picking an arbitrary point. But now we re picking arbitrary points..

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That s on the other indifference curve here we ve called that ic 2. Now we can infer based on what we know about indifference curves. Remember indifference curves each one of these curves is a set of points among which the consumer is indifferent so for example this first indifference curve. Any single point the consumer by definition doesn t care which one of these bundles of goods of x and y.

He or she has so in other words in very simple terms. The consumer has to be indifferent between any two point the same a difference curve right so what that means is that by definition. So we can look at a and b. A and b.

Are on the same a difference curve. A different script. One so it must be true that the consumer is in difference between a and b..

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And in economics. Some books do this for million others. Don t the indifference operator. Is just a little tilde or squiggly guy here.

So this is how we would write sort of mathematically or in economic terms. That were indifferent between a and b. We could do the same thing and we can notice that points a and c are also on the same indifference curve. So it must be true that the consumer is in difference between a and c easy enough so far.

But then if you think about this concept of indifference you know if i don t care whether i have an apple and an orange and i also don t care whether i have an apple or banana. It stands to reason that i d also don t care whether i have an orange or a banana in mathematics or in economics. We call this the transitive property..

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And what that means is that if we re indifferent between a and b. And we re indifferent between a and c. It then follows that we should logically or rationally be indifference between b and c. This is just the mathematical notation for therefore.

And we can see here that that s not consistent with what we have in our diagram. Because b. Was only on a difference curve. One and not a difference curve.

Two and c. Was only on a difference curve. Two and not on the difference curve..

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One. So wait a minute all of a sudden we get a contradiction with our you know fundamental definition of indifference curves. So as soon as we have indifference curves crossing. We get a nonsensical conclusion so in order to be consistent with our definition of rationality and our transitivity of indifference.

It must be the case that indifference curves don t in fact cross. ” ..

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This video explains why a set of indifference curves for an economically rational individual cannot cross.

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Indifference Curve, utility maximization, consumer choice, consumer theory, economics, economics 101, Microeconomics (Field Of Study), microeconomics