A consumer always has a cup of coffee with a tablespoon of sugar.What would the consumer's indifference curves for these two goods look like?
A)curved slightly toward the origin
B)horizontal along the entire length
C)downward sloping with a constant slope
D)vertical along the entire length
E)L-shaped

Question

Quizplus · Accepted Answer

Indifference curves for goods that are perfect complements, like coffee and sugar in this example where the consumer always consumes them together in fixed proportions, are L-shaped. This shape reflects the fact that the consumer values the goods only in specific combinations and any deviation from this combination decreases satisfaction.

A Consumer Always Has a Cup of Coffee with a Tablespoon