Answer to Question #47808 in Microeconomics for Yoyo
Assuming that he is rational, I’s indifference curves cannot cross. [Hint: One of the key assumptions about preferences is that consumption bundles with more of both goods are preferred to those with less of both.]
An indifference curve represents all points where different combinations of consumption yield the exact same level of utility (satisfaction). Different indifference curves are based on different levels of utility. A graph will show the equal levels of utility. A higher utility will simply mean an indifference curve that is farther away from the origin that a lower utility. It's simply a matter of what the graph is designed to show. Plus, consumer preferences are considered to be rational. if the utility of combination A is greater than the utility of combination B, and the utility of combination B is greater than the utility of combination C, then it follows that the utility of combination A is greater than the utility of combination C.