A consumer has preferences over two goods: pizza and beer.The four bundles shown in the table below lie on the same indifference curve for the consumer.

Which of the following statements regarding these bundles is correct?
A) The goods are perfect substitutes for this consumer.
B) The goods are perfect complements for this consumer.
C) These bundles violate the property that indifference curves are bowed inward.
D) These bundles violate the property that indifference curves do not cross.

Question

A consumer has preferences over two goods: pizza and beer.The four bundles shown in the table below lie on the same indifference curve for the consumer.

Which of the following statements regarding these bundles is correct?
A) The goods are perfect substitutes for this consumer. 
B) The goods are perfect complements for this consumer. 
C) These bundles violate the property that indifference curves are bowed inward. 
D) These bundles violate the property that indifference curves do not cross.

Quizplus · Accepted Answer

The Answer of A consumer has preferences over two goods: pizza and beer.The four bundles shown in the table below lie on the same indifference curve for the consumer.

Which of the following statements regarding these bundles is correct?
A) The goods are perfect substitutes for this consumer. 
B) The goods are perfect complements for this consumer. 
C) These bundles violate the property that indifference curves are bowed inward. 
D) These bundles violate the property that indifference curves do not cross.

A Consumer Has Preferences Over Two Goods: Pizza and Beer