Question

Which of the following statements is incorrect?

Options

• Indifference curves are convex to the origin.

• Indifference curves slope downward to the right.

• A higher indifference curve represents a higher level of satisfaction.

• Indifference curves intersect each other.

Answer 1

Indifference curves intersect each other.

Explanation:

Indifference curves cannot intersect, an intersection would imply that the same bundle gives two different satisfaction levels, contradicting consistent preferences.