[amp_mcq option1=”Perfect substitute goods” option2=”Substitute goods” option3=”Perfect complementary goods” option4=”Complementary goods” correct=”option1″]<\/p>\n
The correct answer is: A. Perfect substitute goods.<\/p>\n
An indifference curve is a graph that shows all the combinations of two goods that provide the same level of satisfaction to a consumer. The shape of an indifference curve can tell us a lot about the relationship between the two goods.<\/p>\n
A perfect substitute good is a good that has no other substitutes. In other words, if you have one perfect substitute good, you don’t need any other. For example, if you’re thirsty, you could drink water or soda. Both of these goods would satisfy your thirst, so they are perfect substitutes.<\/p>\n
An indifference curve that is L-shaped indicates that the two goods are perfect substitutes. This is because the consumer is indifferent between any combination of the two goods. For example, if the consumer has $10 to spend, they could buy 5 bottles of water or 2 bottles of soda. They would be equally satisfied with either combination.<\/p>\n
The other options are incorrect because they do not describe the relationship between the two goods as perfectly substitutes.<\/p>\n
[amp_mcq option1=”Perfect substitute goods” option2=”Substitute goods” option3=”Perfect complementary goods” option4=”Complementary goods” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-53249","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n