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Question
The figures depict indifference curves.
The indifference curve given in Figure F.2 represents:
The indifference curve given in Figure F.2 represents:
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Solution
The correct option is A Perfect substitutability
Figure F.2 represents constant MRSxy between the two goods, which is possible only when two goods are perfect substitutes.
Figure F.2 represents constant MRSxy between the two goods, which is possible only when two goods are perfect substitutes.
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