What Are the Two Exceptions to Convex Indifference Curves

question 61

Multiple Choice

What are the two exceptions to convex indifference curves?

• A) imperfect substitutes and imperfect complements
• B) perfect substitutes and perfect complements
• C) imperfect substitutes and perfect complements
• D) perfect substitutes and imperfect complements
• E) There are no exceptions to convex indifference curves.

---

Definitions:

Long Run

refers to a period of time in which all factors of production and costs can be fully adjusted, including all forms of investment.

Short Run

A timeframe in economic terms where firms can adjust production levels only by changing variable inputs, with fixed inputs remaining constant.

Long Run

In economics, a period during which all factors of production and costs are variable, allowing for full industry adjustment to change.

Lowest Price

The minimum price at which a product or service is offered in the market.