Indifference Curve for Perfect Complements

Perfect complement goods are goods that are typically used together, and their demand is in fixed proportions. For instance, left and right shoes or pen and ink. When one good is consumed, the consumption of the other good is essential to derive satisfaction. The indifference curve for perfect compliment goods is L-shaped.

Explanation of L-shaped Indifference Curve

The L-shaped indifference curve shows that the consumer will only be satisfied if he consumes the two goods in a fixed proportion. The slope of the indifference curve is zero on both the axes. The curve is perpendicular to both the axes.

The L-shaped indifference curve indicates that the consumer will not consume any amount of one good without consuming a fixed amount of the other good. For example, if a consumer has one shoe, he will not gain any satisfaction until he has the second shoe. Therefore, the consumer will consume the two goods in a fixed proportion.

The slope of the indifference curve is zero because the consumer is indifferent between consuming two goods in a fixed proportion. The curve is perpendicular to both the axes because the consumer will only consume the two goods in a fixed proportion.

Conclusion

In conclusion, the indifference curve for perfect complement goods is L-shaped. This is because the consumer will only consume the two goods in a fixed proportion. The slope of the indifference curve is zero because the consumer is indifferent between consuming two goods in a fixed proportion. The curve is perpendicular to both the axes because the consumer will only consume the two goods in a fixed proportion.