When two goods are perfect complements, the indifference curves are:
A) straight lines
B) right angles
C) intersecting
D) upward-sloping

Question

Quizplus · Accepted Answer

When two goods are perfect complements, they must be consumed in fixed proportions, meaning a certain amount of one good must always be paired with a certain amount of the other good. This results in indifference curves that are right angles since any combination outside of the fixed proportions will result in a lower level of satisfaction.

When Two Goods Are Perfect Complements, the Indifference Curves Are