Perfect substitutes produce an indifference curve with a(n)________ marginal rate of substitution.
A) increasing
B) decreasing
C) inverse
D) constant
E) right-angle

Question

Quizplus · Accepted Answer

Perfect substitutes have a constant marginal rate of substitution (MRS), meaning that the amount of one good that must be given up to obtain an additional unit of the other good remains the same. Therefore, the answer is D, constant.

Perfect Substitutes Produce an Indifference Curve with A(n)________ Marginal Rate