When two goods are perfect complements they will have
A)indifference curves with a positive slope.
B)indifference curves that are right angles.
C)indifference curves with a constant marginal rate of substitution.
D)Both b and c are correct.

Question

Quizplus · Accepted Answer

When two goods are perfect complements, they are used together in a fixed proportion, meaning that one good is only consumed in conjunction with a certain amount of the other good. As a result, the indifference curves will be right angles because the consumer is indifferent between the different levels of consumption that provide the same level of utility. Additionally, as the marginal rate of substitution (MRS) measures the slope of the indifference curve, the MRS will not vary along a given indifference curve, resulting in a constant MRS.

When Two Goods Are Perfect Complements They Will Have