Suppose sugar and artificial sweeteners are perfect substitutes for Sam.Her indifference curves for those two goods would be
A)downward-sloping and convex to the origin.
B)downward-sloping and straight lines.
C)L-shaped.
D)downward-sloping and concave to the origin.

Question

Quizplus · Accepted Answer

If sugar and artificial sweeteners are perfect substitutes, then Sam would be willing to replace any amount of sugar with an equal amount of artificial sweeteners. This means that Sam's indifference curves would be downward-sloping straight lines, since the trade-off between the two goods is constant.

Suppose Sugar and Artificial Sweeteners Are Perfect Substitutes for Sam