Correct option is D
The correct answer is: (D). never intersect each other
- In consumer behavior theory, indifference curves represent combinations of two goods that provide the consumer with the same level of satisfaction or utility.
- difference curves represent combinations of two goods that give a consumer the same level of satisfaction.
- They never intersect because each curve corresponds to a different level of utility
Example:
Consider two goods: apples and bananas.
- The first indifference curve might show combinations where the consumer is equally satisfied with 5 apples and 3 bananas, or 6 apples and 2 bananas.
- A second indifference curve further away from the origin might show combinations where the consumer is equally satisfied with 8 apples and 4 bananas, or 7 apples and 5 bananas.
If the two curves intersected, it would suggest that a combination of 6 apples and 2 bananas provides two different levels of satisfaction, which is illogical. Therefore, indifference curves cannot intersect.
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