Chapter EMD, Problem 2CYU

To determine

The question requires us to draw different points on the indifference curve and explain the cause for the indifference curve not crossing each other.

Explanation of Solution

The indifference curve represents the different combinations of goods that give the same utility to the consumer.

The following graph represents the indifference curves that are crossing each other.

  

Suppose, A, B, and C are the different consumption bundles.

Point A and point B are on the same indifference curve which gives 200 utils.

Point C and point A are on the same indifference curve, this means the consumer will get a utility of worth 100 utils from consuming any of these bundles.

Here, point A gives different level utilities that are not possible to get. A consumer can’t get a different utility level by consuming the same bundle of goods.

Therefore, indifference curves can’t cross each other.