Copy Right Paper and Keep It Simple Paper both produce plain copy paper. The gra
ID: 1123737 • Letter: C
Question
Copy Right Paper and Keep It Simple Paper both produce plain copy paper. The graph below contains Gina's indifference curves for plain copy paper from the two firms. Based on the information in the graph, rank her indifference curves in order from most preferred to least preferred and answer the multiple choice question. Most Preferred 0 Least Preferred IC1 1C4 IC2 IC3 Based on the shape of the indifference curves, Copy Right Paper and Keep It Simple Paper are: IC2 IC1 IC4 Keep It Simple Paper O inferior goods. O inputs in production. O perfect complements O perfect substitutes.Explanation / Answer
Most preferred to least preferred
IC1 IC2 IC3 IC4
4> PERFECT SUBSTITUTES
Reason
Perfect substitutes have such sloped indifference curves.