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In case of a right angled indifference curve the goods are:
Perfect complements
Prefect substitutes
Inferior goods
Giffen good
- Option 1: Perfect complements
- Goods consumed together. Think of left and right shoes.
- Indifference curve is L-shaped or right-angled.
- The correct answer: Right-angled indifference curve shows perfect complements.
- Option 2: Perfect substitutes
- Goods easily replaceable with each other. Imagine tea and coffee for some.
- Indifference curve is a straight line.
- Option 3: Inferior goods
- As income rises, demand for these goods falls.
- No specific shape for indifference curves.
- Option 4: Giffen goods
- A type of inferior good where demand increases as price increases.
- Different concept from indifference curves.
By: santosh ProfileResourcesReport error
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