3. (5 points) Determine which, if any, of Properties 4-1 through
4-4 are violated by the indifference curves shown in the
following diagram. Please give an explanation.
Product Y A
U?
U?
U?
Product X
4. (5 points) Please explain why two indifference curves cannot
intersect like in the graph below
Y
C
A
B
I?
I?
X
(a) Is A preferred to B?
(b) Is B preferred to C?
(c) Is A preferred to C?
(d) Do your answers to (a), (b), and (c) indicate that preferences
are transitive?