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If Two Goods Are Perfect Substitutes, Their Indifference Curves Will

question 62

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If two goods are perfect substitutes, their indifference curves will be right-angled; if two goods are perfect complements, their indifference curves will be linear.

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Definitions:

Dicta

Comments, observations, or remarks made by a judge in a legal decision or ruling that are not essential to the resolution of the case.

Market Power

Ability of a seller or buyer to affect the price of a good.

Producer Surplus

The gap between the price sellers are willing to accept for their goods or services and what they end up receiving.

Consumer Surplus

The discrepancy between the amount consumers are prepared to pay for a product or service and the amount they end up paying.

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