CA Foundation Exam > CA Foundation Questions > In the case of complimentary goods the shape ...
Start Learning for Free
In the case of complimentary goods the shape of indifference curve will be
- a)Convex to the origin
- b)Straight line
- c)L-Shaped
- d)Circular
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
In the case of complimentary goods the shape of indifference curve wil...
Indifference Curve for Complimentary Goods:
Complimentary goods are those goods which are used together to satisfy a particular want or need. They are goods which are consumed together in fixed proportions.
For example, tea and sugar, car and petrol, pen and ink, etc. If the price of one good increases, the demand for the other good decreases.
The shape of the indifference curve for complimentary goods is L-shaped. The reason behind this is that the consumer would only be willing to consume a fixed quantity of both goods together.
Let us take the example of tea and sugar. If a consumer wants to make a cup of tea, he would require a fixed proportion of tea and sugar. If the price of tea increases, the consumer would not be willing to buy more tea at the higher price because he would require the same amount of sugar to make a cup of tea. Therefore, the consumer would only buy the fixed quantity of tea and sugar together despite the change in the price of tea.
Thus, the indifference curve for complimentary goods is L-shaped because the quantity demanded of one good is dependent on the quantity demanded of the other good.
Conclusion:
Hence, option C is the correct answer as the shape of the indifference curve for complimentary goods is L-shaped.
Complimentary goods are those goods which are used together to satisfy a particular want or need. They are goods which are consumed together in fixed proportions.
For example, tea and sugar, car and petrol, pen and ink, etc. If the price of one good increases, the demand for the other good decreases.
The shape of the indifference curve for complimentary goods is L-shaped. The reason behind this is that the consumer would only be willing to consume a fixed quantity of both goods together.
Let us take the example of tea and sugar. If a consumer wants to make a cup of tea, he would require a fixed proportion of tea and sugar. If the price of tea increases, the consumer would not be willing to buy more tea at the higher price because he would require the same amount of sugar to make a cup of tea. Therefore, the consumer would only buy the fixed quantity of tea and sugar together despite the change in the price of tea.
Thus, the indifference curve for complimentary goods is L-shaped because the quantity demanded of one good is dependent on the quantity demanded of the other good.
Conclusion:
Hence, option C is the correct answer as the shape of the indifference curve for complimentary goods is L-shaped.
Free Test
FREE
| Start Free Test |
Community Answer
In the case of complimentary goods the shape of indifference curve wil...
L shaped
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
In the case of complimentary goods the shape of indifference curve will bea)Convex to the originb)Straight linec)L-Shapedd)CircularCorrect answer is option 'C'. Can you explain this answer?
Question Description
In the case of complimentary goods the shape of indifference curve will bea)Convex to the originb)Straight linec)L-Shapedd)CircularCorrect answer is option 'C'. 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 In the case of complimentary goods the shape of indifference curve will bea)Convex to the originb)Straight linec)L-Shapedd)CircularCorrect answer is option 'C'. 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 In the case of complimentary goods the shape of indifference curve will bea)Convex to the originb)Straight linec)L-Shapedd)CircularCorrect answer is option 'C'. Can you explain this answer?.
In the case of complimentary goods the shape of indifference curve will bea)Convex to the originb)Straight linec)L-Shapedd)CircularCorrect answer is option 'C'. 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 In the case of complimentary goods the shape of indifference curve will bea)Convex to the originb)Straight linec)L-Shapedd)CircularCorrect answer is option 'C'. 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 In the case of complimentary goods the shape of indifference curve will bea)Convex to the originb)Straight linec)L-Shapedd)CircularCorrect answer is option 'C'. Can you explain this answer?.
Solutions for In the case of complimentary goods the shape of indifference curve will bea)Convex to the originb)Straight linec)L-Shapedd)CircularCorrect answer is option 'C'. 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 In the case of complimentary goods the shape of indifference curve will bea)Convex to the originb)Straight linec)L-Shapedd)CircularCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
In the case of complimentary goods the shape of indifference curve will bea)Convex to the originb)Straight linec)L-Shapedd)CircularCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for In the case of complimentary goods the shape of indifference curve will bea)Convex to the originb)Straight linec)L-Shapedd)CircularCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of In the case of complimentary goods the shape of indifference curve will bea)Convex to the originb)Straight linec)L-Shapedd)CircularCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice In the case of complimentary goods the shape of indifference curve will bea)Convex to the originb)Straight linec)L-Shapedd)CircularCorrect answer is option 'C'. 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