Question

If two goods are perfect substitutes for each other, it necessarily follows that

Answer 1

Answer:

If two goods were perfect substitutes of each other, it necessarily follows that an indifference curve relating the two goods will be linear. As price rises for a fixed money income, the consumer seeks the less expensive substitute at a lower indifference curve.

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Answer 2

Answer:

If two goods were perfect substitutes of each other, it necessarily follows that an indifference curve for perfect substitutes will be linear because the marginal rate of substitution between two substitutes is constant.