A straight line indifference curve indicates that the two products are

Assessment: JAMB UTME - Economics - 2006 Subject: Economics

Question 1 Report

A straight line indifference curve indicates that the two products are
Answer Details
A straight line indifference curve indicates that the two products are perfect substitutes. This means that the consumer is indifferent between the two products and is willing to exchange one for the other at a constant rate, regardless of the price or quantity consumed. For example, if a consumer is equally satisfied with consuming one apple or one banana, and the price of apples increases, the consumer will switch to consuming only bananas as they are perfect substitutes.

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