In consumer behavior theory, two goods are perfect substitutes

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    when the indifference curve illustrating consumption of different combinations of the two goods is a straight line with a slope of -1.
     when the marginal rate of substitution (MRS) between the goods is 1.
     when consuming more of one good does not require reducing consumption of another good to hold satisfaction constant.
     Both 1 and 2.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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Both 1 and 2.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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