
Figure 4.3 A Consumer’s Indifference Curves Cannot Cross
Indifference curves cannot intersect. Here, Michaela would be indifferent between bundles
D and
F and also indifferent between bundles
E and
F. The transitivity property would therefore imply that she must also be indifferent between bundles
D and
E. But this can’t be true, because more is preferred to less, and bundle
E contains more of both goods (more friends in her building and a larger apartment) than
D.