When there is a high degree of complementarity between two products,then the indifference curves will:
A) be reasonably close to straight lines.
B) be perfectly straight lines.
C) bend sharply.
D) be positively sloped.

Question

Quizplus · Accepted Answer

When there is a high degree of complementarity between two products, the indifference curves will bend sharply. Complementary goods are those goods that are consumed together, such as bread and butter, or cars and gasoline. As the quantity consumed of one good increases, the demand for the complementary good also increases. As a result, when the consumer's budget lets him or her consume more of one good, he or she will demand more of the complementary good. This leads to a sharp bend in the indifference curve.

When There Is a High Degree of Complementarity Between Two