Question

if a consumer is completely unwilling to substitute one good for the other, then ... Select...

if a consumer is completely unwilling to substitute one good for the other, then ...

Select one:

a. the goods are complimentary

b. the consumer's preferences can be represented by a Cobb-Douglas function

c. the goods are perfect complements

d. the goods are perfect substitutues

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Answer #1

If a consumer is unwilling to substitute then they are mostly the perfect complements.

Option B says that preference is cobb douglas which means the person buys products in some proportion. It cant be that he will be unwilling to substitute it.

Option D says it is perfect substitute which means the person should not be unwilling to buy the substitute.

Option A & Option C is quit close but i will go with option C perfect complement. If a person is perfect complement then there is no room for substitution. hence optionC

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