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: Indifference Curve Properties: Indifference curves slope downward, are convex to the origin, and never intersect.

Step 2: Conclusion: Option 2 is incorrect because indifference curves do not intersect.