A consumer's preferences for $1 bills and $20 bills can be represented by indifference curves that are
A)bowed out from the origin
B)bowed in towards the origin
C)straight lines
D)right angles

Question

Quizplus · Accepted Answer

A consumer views $1 bills and $20 bills as perfect substitutes, so their indifference curves are straight lines, reflecting a constant rate of substitution between the two.

A Consumer's Preferences for $1 Bills and $20 Bills Can