Figure 21-11
-Refer to Figure 21-11. The graph illustrates
A)a typical budget constraint.
B)a typical indifference curve.
C)an indifference curve where goods X and Y are perfect complements.
D)an indifference curve where goods X and Y are perfect substitutes.

Question

Figure 21-11 
-Refer to Figure 21-11. The graph illustrates
A)a typical budget constraint. 
B)a typical indifference curve. 
C)an indifference curve where goods X and Y are perfect complements. 
D)an indifference curve where goods X and Y are perfect substitutes.

Quizplus · Accepted Answer

The graph illustrates a typical indifference curve, which shows the different combinations of goods X and Y that provide the same level of utility to the consumer. The slope of the indifference curve represents the marginal rate of substitution between the two goods.

Figure 21-11 -Refer to Figure 21-11. the Graph Illustrates