If green bikes and brown bikes are perfect substitutes, the corresponding indifference curves
A) are horizontal.
B) intersect each other.
C) are vertical.
D) have constant slope.

Question

Quizplus · Accepted Answer

Perfect substitutes have indifference curves that are straight lines with a constant slope, indicating a constant rate of substitution between the two goods.

If Green Bikes and Brown Bikes Are Perfect Substitutes, the Corresponding