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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?
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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.
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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.
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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
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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?
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