Which of the following statements is correct? If the indifference curves are at right angles to each other, then the consumer will:
(i) be indifferent to trading one good for the other
(ii) always consume the good in constant proportions
(iii) will always consume a bundle on the "point" of the indifference curve (where the indifference curves meet at 90-degrees)
A)(i) and (iii) only
B)(ii) and (iii) only
C)(i) only
D)(ii) only

Question

Quizplus · Accepted Answer

When indifference curves are at right angles, it indicates perfect complements, meaning the consumer will always consume the goods in fixed proportions, and the optimal consumption bundle is at the "point" where the curves meet.

Which of the Following Statements Is Correct? If the Indifference