Suppose a person's utility function is given by . If good and good are perfect substitutes, then the indifference curves are
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1 mark, −0.25MicroeconomicsConsumer preferences and utilityPerfect substitutes, complements and lexicographic preferencesEasyabout 1 min
JNU SSS 2011 Question 9: Consumer preferences and utility
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Suppose a person's utility function is given by u(x, y). If good x and good y are perfect substitutes, then the indifference curves are (A) straight lines (B) L-shaped (C) U-shaped (D) None of the above
Consumer preferences and utility has come up 93 times in 7 exams since 2007.
What this question tests
This question is on Perfect substitutes, complements and lexicographic preferences, part of Consumer preferences and utility in Microeconomics.
Preferences that give straight-line, L-shaped or dictionary-ordered indifference sets, and how they differ from standard ones.
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