Economics, 3rd Edition

The Impossibility of Intersecting Indifference Curves

A situation like this can never happen. According to these 

indifference curves, the consumer would be equally satisfied at 

points A, B and C, even though point C has more of both goods 

than point A.

Th I

ibilit

FIGURE 5.7

Quantity

of cola

Quantity

of pizza

0

C

A

B

FIGURE 5.8

Bowed Indifference Curves

Indifference curves are usually bowed inward. This 

shape occurs because at point A, the consumer has 

little pizza and much cola, so he requires a lot of 

extra cola to induce him to give up one of the pizzas: 

6 litres of cola per pizza, to be precise. At point B, 

the consumer has much pizza and little cola, so he 

requires only a little extra cola to induce him to give 

up one of the pizzas 

–1 litre of cola in this example.

Quantity

of cola

Quantity

of pizza

2

3

1

6

1

1

6

7

0

Indifference

curve

8

4

3

14

A

B