A slightly bowed inward set of indifference curves represents the two goods as which of the following types
A)perfect substitutes
B)perfect complements
C)very close substitutes
D)very close complements

Question

Quizplus · Accepted Answer

A slightly bowed inward set of indifference curves represents goods that are very close substitutes. This means that as the price or quantity of one good changes, the consumer is willing to substitute it with the other good to a high degree. This results in a relatively flat indifference curve, indicating that the consumer is indifferent between small changes in the consumption of the two goods. The bowing inward is due to diminishing marginal utility of each good as more of it is consumed.

A Slightly Bowed Inward Set of Indifference Curves Represents the Two