Question

Jake considers fries and onion rings perfect substitutes. The indifference curve between fries and onion rings must be:

A. concave.

B. perfectly vertical.

C. a straight line.

D. a right angle.

Answer 1

It has been stated that Jake considers fries and onion rings as perfect substitutes.

This means that Jake can consume fries and onion rings in place of each other with equal ease and comfort.

This also means that Jake get equal utility from consumption of both goods. In sucg scenario, he would not be ready to sacrifice less quantity of either fries or onion rings for more quantity of either fries or onion rings.

In such case, the opportunity cost remains same and due to this the indifference curve is a linear straight line.

So,

The indifference curve between fries and onion rings must be a straight line.

Hence, the correct answer is the option (C).