Negatively-sloped,straight-line indifference curves imply:
A)that one of the goods has no effect on utility.
B)that the goods are perfect complements.
C)that the goods are perfect substitutes.
D)that one of the goods is an economic "bad".

Question

Quizplus · Accepted Answer

Negatively-sloped straight-line indifference curves imply that the goods are perfect substitutes, meaning that the consumer is willing to give up one unit of a good to obtain another unit of the other good in a fixed ratio and still maintain the same level of utility. In other words, the goods are interchangeable to the consumer at a constant rate.

Negatively-Sloped,straight-Line Indifference Curves Imply