Perfect substitutes will have
A) straight line indifference curves.
B) reverse L-shaped indifference curves.
C) L-shaped indifference curves.
D) curved indifference curves, bowed in from the origin.
E) curved indifference curve, bowed out from the origin.

Question

Quizplus · Accepted Answer

Perfect substitutes are goods that can be used in place of each other without any difference in utility. This means that the consumer is indifferent between the two goods and will be willing to substitute one for the other at a fixed rate. This leads to straight line indifference curves, as the consumer is willing to give up a fixed amount of one good to obtain a fixed amount of the other.

Perfect Substitutes Will Have