When Two Goods Are Perfect Substitutes, the

question 57

Multiple Choice

When two goods are perfect substitutes, the

• A)indifference curve is a downward-sloping straight line.
• B)marginal rate of substitution is constant.
• C)indifference curve is a vertical straight line.
• D)Both a and b are correct.

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Definitions:

Steven Reiss

A psychologist known for his work on intrinsic motivation and the 16 basic desires theory.

Basic Desires

Fundamental emotional needs or urges that motivate an individual's actions and decisions.

Ohio State University

A large, public research university located in Columbus, Ohio, known for its extensive academic programs and research initiatives.

Daniel Pink's Theory

A motivation concept arguing that autonomy, mastery, and purpose fuel individual performance better than traditional rewards.