A consumer considers Coke and Pepsi to be perfect substitutes for each other.What would the consumer's indifference curves for these two goods look like?
A)L-shaped
B)horizontal along the entire length
C)vertical along the entire length
D)curved slightly toward the origin
E)downward sloping with a constant slope

Question

Quizplus · Accepted Answer

Indifference curves for perfect substitutes are straight lines with a constant slope because the consumer is willing to substitute one good for another at a constant rate.

A Consumer Considers Coke and Pepsi to Be Perfect Substitutes