If a person's indifference curves can be represented as a straight line,the person views the goods as
A)perfect substitutes
B)perfect complements
C)complements (but not perfect)
D)substitutes (but not perfect)

Question

Quizplus · Accepted Answer

When indifference curves are represented as a straight line, it means that the individual is willing to substitute one good for another in a constant proportion, indicating that the goods are perfect substitutes. In this case, the marginal rate of substitution (MRS) is constant and equal to the slope of the indifference curve, i.e., the amount of one good that the individual is willing to give up to obtain an additional unit of the other good.

If a Person's Indifference Curves Can Be Represented as a Straight