Suppose that Milton likes to consume one glass of milk with every three chocolate chip cookies. For Milton, an additional cookie has no value unless he can consume it with the appropriate proportion of milk. Milton's indifference curves for milk and cookies are
A)right angles.
B)bowed inward.
C)bowed outward.
D)downward-sloping straight lines.

Question

Quizplus · Accepted Answer

Milton's preferences indicate perfect complements, meaning he values milk and cookies in a fixed proportion. This results in right-angle indifference curves.

Suppose That Milton Likes to Consume One Glass of Milk