Question

Which of the following statements is incorrect?

• A. Indifference curves are downward sloping
• B. Indifference curves intersect each other
• C. Indifference curves are usually convex
• D. Consumer preferences are assumed to be transitive

Hint:

Remember: Indifference curves cannot intersect due to the transitivity of consumer preferences.

Answer 1

The Correct Option is B

Step 1: Properties of indifference curves: Downward sloping, convex to origin, and do not intersect.

Step 2: Conclude: Option 2 is incorrect as ICs never intersect.