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#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
There is no reason why two indifference curves for two different consumers cannot [...]
Answer
intersect.

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
There is no reason why two indifference curves for two different consumers cannot [...]
Answer
?

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
There is no reason why two indifference curves for two different consumers cannot [...]
Answer
intersect.
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elen and Tom. The indifference curves for Helen will likely be different from Tom’s. And although for any given individual two indifference curves cannot cross, there is no reason why two indifference curves for two different consumers cannot <span>intersect.<span><body><html>

Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
3; Note: Two indifference curves for a given individual cannot cross because the transitivity assumption would be violated. 3.5. Gains from Voluntary Exchange: Creating Wealth through Trade <span>There is no requirement that all consumers have the same preferences. Take the case of Helen Smith and Tom Warren. The indifference curves for Smith will likely be different from Warren’s. And although for any given individual two indifference curves cannot cross, there is no reason why two indifference curves for two different consumers cannot intersect. Consider Exhibit 5, in which we observe an indifference curve for Smith and one for Warren. Suppose they are initially endowed with identical bundles, represented by a. They each have e

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