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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.