Perfect Substitutes

question 28

Multiple Choice

Perfect substitutes

• A)always have indifference curves with slopes of -1.
• B)always have indifference curves with slopes of 1.
• C)have fixed rates of trading off one good for another.
• D)have horizontal indifference curves.

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Definitions:

Consumer Income

The total amount of income available to an individual or household for spending, saving, and investing after taxes.

Supply Curve

The supply curve is a graphical representation showing the relationship between the price of a good and the quantity supplied by producers.

Sugar Beets

A plant whose root contains a high concentration of sucrose and which is grown commercially for sugar production.

Refined

Improved or made more elegant or sophisticated through careful modification.