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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?
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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.
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In the case of complimentary goods the shape of indifference curve wil...
L shaped
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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?
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