Indifference curves need not to be parallel to each other and also Indifference curves never touch or intersect each other. these two statements are contradictory to each other but these statements are true explain why(p.66)?

Indifference curves are not necessarily parallel to each other nor do they touch each other. Though they are falling, negatively inclined to the right, yet the rate of fall will not be the same for all indifference curves. In other words, the diminishing marginal rate of substitution between the two goods is essentially not the same in the case of all indifference schedules. The two curves shown in figure given below, they are not parallel to each other nor do they touch each other.

  • 1
What are you looking for?