-The indifference curve in the above figure
A) illustrates two goods that are perfect complements.
B) illustrates two goods that are perfect substitutes.
C) violates assumptions about preferences.
D) None of the above statements is correct.

Question

-The indifference curve in the above figure
A) illustrates two goods that are perfect complements. 
B) illustrates two goods that are perfect substitutes. 
C) violates assumptions about preferences. 
D) None of the above statements is correct.

Quizplus · Accepted Answer

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

-The Indifference Curve in the Above Figure