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Two of the assumptions about preferences are that they are transitive over consumption bundles, and that consumption bundles

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ECONOMICS 110/111Assuming that he is rational

ECONOMICS 110/111Assuming that he is rational

Question

Is this statement True, False, or Uncertain? Explain why.
The statement is:
ECONOMICS 110/111Assuming that he is rational, Ian’s indifference curves cannot cross. [Hint: Two of the assumptions about preferences are that they are transitive over consumption bundles, and that consumption bundles with more of at least one good and no less of the other are preferred.]

ECONOMICS 110/111Assuming that he is rational

 
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