Perfect substitutes will have
A)reverse L-shaped indifference curves.
B)curved indifference curve, bowed out from the origin.
C)L-shaped indifference curves.
D)straight line indifference curves.
E)curved indifference curves, bowed in from the origin.

Question

Quizplus · Accepted Answer

Perfect substitutes have straight line indifference curves because the consumer is completely indifferent between the two goods and is willing to substitute one for the other at a constant rate. This means that the marginal rate of substitution is constant and the indifference curves are straight lines with a slope equal to the constant rate of substitution.

Perfect Substitutes Will Have