What is the relationship between the demand curve and the concept of perfect substitutes in a graph of perfect substitutes?

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2026-05-20 00:40

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In a graph of perfect substitutes, the demand curve is a straight line because consumers are willing to switch between the two goods at a constant rate. This means that as the price of one good decreases, consumers will demand more of that good and less of the other, resulting in a linear demand curve.

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