If two goods were perfect substitutes of each other, it means that the Indifference Curve relating to the two goods ____

Will be curvilinear.

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Will be linear.

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Will be divided into two segments which meet at a right angle.

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Will be convex to the origin.

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Solution

The correct option is C Will be linear.
An indifference curve for perfect substitutes will be linear because the marginal rate of substitution between two substitutes is constant. If two goods X and Y are perfect substitutes, the indifference curve is a straight line with negative slope, as shown in Figure 41 because the MRS_XY is constant.

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