Consider the following three market baskets:Table 3.1

-Two goods for which the marginal rate of substitution is zero or infinite are:
A) perfect substitutes.
B) perfect complements.
C) goods considered "bads."
D) substitutes and complements at the same time.

Question

Consider the following three market baskets:Table 3.1
 
-Two goods for which the marginal rate of substitution is zero or infinite are:
A) perfect substitutes. 
B) perfect complements. 
C) goods considered "bads." 
D) substitutes and complements at the same time.

Quizplus · Accepted Answer

Perfect complements are goods for which the marginal rate of substitution is either zero or infinite, indicating that the consumer places a fixed value on the ratio in which these goods are consumed together, such as left shoes and right shoes.

Consider the Following Three Market Baskets:Table 3.1