If an indifference map for a consumer is made up of straight, negatively sloped lines, the goods are
A) perfect complements.
B) unrelated.
C) perfect substitutes.
D) not desirable.

Question

Quizplus · Accepted Answer

When the indifference map is composed of straight, negatively sloped lines, it suggests that the goods are perfect substitutes. This means that the consumer is indifferent between the different combinations of goods as long as they provide the same level of utility, which they do by substituting one for the other. This leads to straight lines on the indifference curve diagram.

If an Indifference Map for a Consumer Is Made Up