Which one of the following statements is true about the indifference curves for two goods that are perfect substitutes?
A)The indifference curves are negatively-sloped straight lines.
B)The indifference curves are L-shaped.
C)The marginal rate of substitution is zero.
D)The indifference curves are positively-sloped straight lines.
E)The marginal rate of substitution is infinity.

Question

Quizplus · Accepted Answer

Indifference curves for two goods that are perfect substitutes are negatively-sloped straight lines because the consumer is willing to substitute one good for the other at a constant rate, reflecting a constant marginal rate of substitution.

Which One of the Following Statements Is True About the Indifference