Perfect substitutes-indifference curves

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Reference no: EM131144997

Sarah Jones believes that Coke and Pepsi are perfect substitutes. That is, she is equally happy with a Coke or a Pepsi and cannot tell the difference between them. Her indifference curves:

a. are linear, with slope equal to –1.

b. are upward-sloping.

c. are linear, with slope equal to 1.

d. cross where she consumes equal amounts of Coke and Pepsi.

e. cannot be defined, since she likes both equally well.

Reference no: EM131144997

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