Perfect substitutes
A)always have indifference curves with slopes of -1.
B)always have indifference curves with slopes of 1.
C)have fixed rates of trading off one good for another.
D)have horizontal indifference curves.

Question

Quizplus · Accepted Answer

Perfect substitutes have a fixed rate of trading off one good for another. This means that the tradeoff between the two goods is constant and does not depend on the quantity of either good consumed. This results in linear and downward-sloping indifference curves with a slope equal to the ratio of the prices of the two goods.

Perfect Substitutes