Figure 21-14
-Refer to Figure 21-14. Which of the following statements is correct?
A)The indifference curves represented in graph a are perfect complements.
B)The indifference curves represented in graph b are perfect substitutes.
C)The indifference curves represented in graph c are neither perfect substitutes not perfect complements.
D)All of the above are correct.

Question

Figure 21-14   
-Refer to Figure 21-14. Which of the following statements is correct?
A)The indifference curves represented in graph a are perfect complements. 
B)The indifference curves represented in graph b are perfect substitutes. 
C)The indifference curves represented in graph c are neither perfect substitutes not perfect complements. 
D)All of the above are correct.

Quizplus · Accepted Answer

In graph a, the indifference curves are intersecting, indicating that the goods are not perfect complements. In graph b, the indifference curves are linear, indicating perfect substitutes. In graph c, the indifference curves are not intersecting and not linear, indicating that the goods are neither perfect complements nor perfect substitutes. Therefore, only option C is correct.