A consumer's preferences for $1 bills and $20 bills can be represented by indifference curves that are
A)bowed out from the origin.
B)bowed in toward the origin.
C)straight lines.
D)right angles.

Question

Quizplus · Accepted Answer

A consumer's preferences for perfect substitutes, like $1 bills and $20 bills, are represented by straight-line indifference curves, indicating a constant rate of substitution.

A Consumer's Preferences for $1 Bills and $20 Bills Can