Question

If two goods are perfect substitutes, the indifference curve is

Answer 1

An indifference curve relating the two goods will be curvilinear

B. An indifference curve relating the two goods will be linear

C. An indifference curve relating the two goods will be divided into two segments which meet at a right angle

D. An indifference curve relating the two goods will be convex to the origin

Answer 2

Explanation:

If two goods are perfect substitutes then theindifference curves will have a constant slope since the consumer would be willing to switch between at a fixed ratio. The marginal rate ofsubstitution between perfect substitutes is likewise constant. ok