CA Foundation Exam > CA Foundation Questions > Incase of a right angled indifference curve t...
Start Learning for Free
Incase of a right angled indifference curve the goods are:
- a)Perfect complements
- b)Perfect substitutes
- c)Inferior goods
- d)Giffen goods
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Incase of a right angled indifference curve the goods are:a)Perfect co...
Answer: A. Perfect complementsExplanation:- Right-angled indifference curve: It is a type of indifference curve that forms a right angle or L-shape. This indicates that the consumer prefers consuming goods in fixed proportions, meaning the consumer will not substitute one good for another. - Perfect complements: These are goods that are consumed together in fixed proportions. The utility derived from one good directly depends on the consumption of the other good. Examples include left and right shoes, or a pen and ink.- Reason for the answer: In the case of a right-angled indifference curve, since the goods are consumed together in fixed proportions, they exhibit the characteristics of perfect complements.Other types of goods mentioned in the options:- Perfect substitutes: These are goods that can be completely substituted for each other without affecting the utility derived by the consumer. In this case, the indifference curve would be a straight line with a constant slope.- Inferior goods: These are goods for which demand decreases as a consumer's income increases. This has no direct relation to the shape of the indifference curve.- Giffen goods: These are a specific type of inferior goods, where demand increases as the price of the good increases. This is a rare phenomenon and also has no direct relation to the shape of the indifference curve.
View all questions of this test
Most Upvoted Answer
Incase of a right angled indifference curve the goods are:a)Perfect co...
Explanation:
Indifference curve is a graphical representation of a consumer's preferences for two goods or services. It shows the different combinations of two goods that provide the same level of satisfaction or utility to the consumer.
Right angled indifference curve: In a right angled indifference curve, the curve is L-shaped, and it intersects both the horizontal and vertical axis. It indicates that the consumer is indifferent between two goods only when they are consumed in a fixed proportion.
Goods are perfect complements: When two goods are consumed in a fixed proportion, they are called perfect complements. In this case, the consumer derives satisfaction only when both goods are consumed together in a specific ratio. For example, left and right shoes are perfect complements, and a consumer will not derive any satisfaction from having multiple left or right shoes.
Therefore, in the case of a right angled indifference curve, the goods are perfect complements, and the consumer derives satisfaction only when they are consumed in a fixed proportion.
Indifference curve is a graphical representation of a consumer's preferences for two goods or services. It shows the different combinations of two goods that provide the same level of satisfaction or utility to the consumer.
Right angled indifference curve: In a right angled indifference curve, the curve is L-shaped, and it intersects both the horizontal and vertical axis. It indicates that the consumer is indifferent between two goods only when they are consumed in a fixed proportion.
Goods are perfect complements: When two goods are consumed in a fixed proportion, they are called perfect complements. In this case, the consumer derives satisfaction only when both goods are consumed together in a specific ratio. For example, left and right shoes are perfect complements, and a consumer will not derive any satisfaction from having multiple left or right shoes.
Therefore, in the case of a right angled indifference curve, the goods are perfect complements, and the consumer derives satisfaction only when they are consumed in a fixed proportion.
Free Test
FREE
| Start Free Test |
Community Answer
Incase of a right angled indifference curve the goods are:a)Perfect co...
No the answer is b bcoz if the ic curve is right angled triangle in case of perfect substitutes the two axis are touched by a straight line forming a right angled triangle
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Top Courses for CA FoundationView all
Incase of a right angled indifference curve the goods are:a)Perfect complementsb)Perfect substitutesc)Inferior goodsd)Giffen goodsCorrect answer is option 'A'. Can you explain this answer?
Question Description
Incase of a right angled indifference curve the goods are:a)Perfect complementsb)Perfect substitutesc)Inferior goodsd)Giffen goodsCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Incase of a right angled indifference curve the goods are:a)Perfect complementsb)Perfect substitutesc)Inferior goodsd)Giffen goodsCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Incase of a right angled indifference curve the goods are:a)Perfect complementsb)Perfect substitutesc)Inferior goodsd)Giffen goodsCorrect answer is option 'A'. Can you explain this answer?.
Incase of a right angled indifference curve the goods are:a)Perfect complementsb)Perfect substitutesc)Inferior goodsd)Giffen goodsCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Incase of a right angled indifference curve the goods are:a)Perfect complementsb)Perfect substitutesc)Inferior goodsd)Giffen goodsCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Incase of a right angled indifference curve the goods are:a)Perfect complementsb)Perfect substitutesc)Inferior goodsd)Giffen goodsCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Incase of a right angled indifference curve the goods are:a)Perfect complementsb)Perfect substitutesc)Inferior goodsd)Giffen goodsCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Incase of a right angled indifference curve the goods are:a)Perfect complementsb)Perfect substitutesc)Inferior goodsd)Giffen goodsCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Incase of a right angled indifference curve the goods are:a)Perfect complementsb)Perfect substitutesc)Inferior goodsd)Giffen goodsCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Incase of a right angled indifference curve the goods are:a)Perfect complementsb)Perfect substitutesc)Inferior goodsd)Giffen goodsCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Incase of a right angled indifference curve the goods are:a)Perfect complementsb)Perfect substitutesc)Inferior goodsd)Giffen goodsCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Incase of a right angled indifference curve the goods are:a)Perfect complementsb)Perfect substitutesc)Inferior goodsd)Giffen goodsCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup