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2006-12-12 18:10:35 · 3 answers · asked by charles 1 in Social Science Economics

3 answers

it is simple for eg thee are two ic curve i1 n i2 n i1 is above i2 n there are points an b in i1 n i2 resp ....
n c is the intrsection point of 2 curves so we can say that a consumer is indifferent to point b n c as they lie on same curve .similarly consumer is also indifferent to point
a n c. thus it means he is indifferent to point a n b which violates the 1st ssumption of ic curves that
consumer prefer to be on a large ic curve rather thn a lower one.........

2006-12-12 18:48:36 · answer #1 · answered by Anonymous · 0 0

Indifference curves are a way of showing a 3 dimensional shape in 2 dimensions. The utility function U(x,y) is like a hill where the more satisfied you are the higher you are on the hill . Indifference curves are the x y coordinates of a line of constant height (satisfaction). The same x,y coordinates can not be at 2 heights nor can they represents 2 levels of satisfaction.

2006-12-12 19:24:36 · answer #2 · answered by meg 7 · 0 0

INDIFFERENCE CURVES REFLECT UNIQUE LEVELS OF UTILITY. HENCE THEY DONOT INTERSECT FOR OTHERWISE TWO CURVES WOULD REPRESENT THE SAME LEVEL OF UTILITY - AN ABSURD PROPOSITION!

2006-12-12 19:38:48 · answer #3 · answered by shreyo_s 2 · 0 0

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