When Two Goods Are Perfect Complements They Will Have

question 33

Multiple Choice

When two goods are perfect complements they will have

• A)indifference curves with a positive slope.
• B)indifference curves that are right angles.
• C)indifference curves with a constant marginal rate of substitution.
• D)Both b and c are correct.

---

Definitions:

Consumer Surplus

The consumer surplus is the gap between what consumers are ready and capable of paying for a good or service and what they actually spend on it.

Marginal Utility

The augmented satisfaction or value someone derives from the consumption of an extra unit of a good or service.

Consumer Surplus

Consumer surplus represents the discrepancy between the total price consumers are prepared and able to spend on a product or service and the actual amount they end up paying.

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.