What is the relationship between perfect substitutes and indifference curves in consumer theory?

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1145910

2026-03-04 10:25

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Perfect substitutes are goods that can be easily substituted for one another in a consumer's preferences. In consumer theory, when goods are perfect substitutes, the indifference curves are straight lines because the consumer is equally satisfied with any combination of the two goods. This means that the consumer is indifferent between different combinations of the goods as long as the total utility remains the same.

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