Sentence completion choice perfect complements OR perfect su

Sentence completion choice: perfect complements OR perfect substitutes.

6. Optimization with perfect complements and perfect substitutes Aa Aa The following graph shows a variety of possible indifference curves (labeled U1, U2, and U3, respectively) for Frances. Each indifference curve represents a different level of happiness. BAGELS (Packages per month) 10 Budget Constraint Optimal Choice 0 1 2 3 4 5 6 7 89 10 ENGLISH MUFFINS [Packages per month] Help aearAL The shape of the indifference curves indicates that the goods english muffins and bagels must be Suppose the price of english muffins is $5 per package, the price of bagels is $5 per package, and Frances\'s total income is $30 per month. On the previous graph, use the purple line (diamond symbols) to draw the budget constraint. Then, place the black point (X symbol) on the graph to indicate the optimal choice. Dashed drop lines will automatically extend to both axes

Solution

The answer is perfect substitutes. The reason is as you increase more and more muffins the no. Of bangles which needs to be decreased remains always same to keep utility constant. I hope you only need this answer as you have mentioned only about this