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Indifference Curves for Perfect Substitutes and Perfect Complements
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Indifference Curves for Perfect Substitutes and Perfect Complements
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18. Consumer Choice and Behavioral Economics / Indifference Curves for Perfect Substitutes and Perfect Complements / Problem 1
Problem 1
Why does having more of one good not increase satisfaction in the case of perfect complements?
A
Because the marginal rate of substitution is constant.
B
Because satisfaction only increases when both goods are consumed in fixed proportions.
C
Because the goods are perfect substitutes.
D
Because the goods are unrelated.
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