Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 7 Topics for Further Study Chapter 21 of 36 The Theory of Consumer Choice Section 7 of 26 … Figure 3 - The Impossibility of Intersecting Indifference Curves A situation of intersecting indifference curves 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. … Four properties of indifference curves: Property 1 - higher (farther right) indifference curves are preferred to lower ones Property 2 - indifference curves are downward sloping Property 3 - indifference curves do not cross Property 4 - indifference curves are bowed inward … Property 3 - Indifference curves do not cross Suppose two indifference curves did cross, as in Figure 3. Because point A is on the same indifference curve as point B, the two points would make the consumer equally happy. Because point B is on the same i...