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Two indifference curves can never intersect each other because intersection would imply that:
Atwo different satisfaction levels are equal
Bthe consumer is perfectly rational
Cthe budget line is downward sloping
Dboth goods have a zero price
Answer & Solution
Correct answer: A. two different satisfaction levels are equal
1. If two curves crossed, a common point would share both satisfaction levels.
2. This would make a higher and a lower level of satisfaction equal, which is logically absurd.
3. Prices, rationality, and budget-line slope are unrelated to this contradiction, so those options are wrong.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit II "Theory of Consumer Behaviour", p.17_
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