If green bikes and brown bikes are perfect substitutes, the corresponding indifference curves
A) are vertical.
B) have constant slope.
C) are horizontal.
D) intersect each other.

Question

Quizplus · Accepted Answer

When two goods are perfect substitutes, the indifference curves are straight lines with a constant slope, reflecting the constant trade-off rate between the two goods.

If Green Bikes and Brown Bikes Are Perfect Substitutes, the Corresponding