If two goods are complements, then their
A) indifference curves are positively sloped straight lines.
B) indifference curves are negatively sloped straight lines.
C) indifference curves are L-shaped.
D) marginal rate of substitution is infinity.

Question

Quizplus · Accepted Answer

Complementary goods have an L-shaped indifference curve because as the price of one good changes, the quantity demanded for that good changes in the opposite direction, causing a kink at the axis of the complementary good. This means that consumers only want to consume the other good if they can also consume a certain amount of the complimentary good.

If Two Goods Are Complements, Then Their