Question

Suppose, to a labor union, wage payment and employment level are perfect substitutes. Draw the indifference map. Now suppose that a labor union sees wage and employment level as non-substitutable. Draw the indifference map

Answer 1

in case of perfect substitutions, the marginal rate of transformation between the goods here wages and employment is constant and the indifference curve will have a constant slope.

In case the goods are non-substitutable or cannot be used for one another in any proportion implies that the goods are complementary and they have zero or infinite substitutability. The curves, in this case, would be L shaped (as we move to the right or left on any curve giving more of one good and same of other good will not make consumer any happier (same utility)).

It is to be noted that the indifference map is simply the set of different indifference curves each representing a different level of utility.