JAMB 2019 Economics · Question 72
In the case of highly or close complementary goods, the indifference curve is_______
Options
- A.A straight line
- B.A right-angled
- C.L - shaped
- D.Curvature
Answer: C. L - shaped
Explanation written with AI and checked against the answer key
Analyze the question: The question asks what shape the indifference curve takes for perfect (close) complementary goods, such as left and right shoes, or tea and sugar.
Explain the concept:
- An indifference curve shows combinations of two goods that give a consumer the same level of satisfaction.
- Perfect substitutes (e.g., two brands of the same product) give a straight line, because the consumer is willing to swap one for the other at a constant rate.
- Perfect complements are goods consumed together in a fixed proportion. Extra units of one good add no satisfaction unless you also get more of the other. This gives an L-shaped (right-angled) indifference curve.
- Normal goods that are imperfect substitutes give a convex curve (curvature) bowed toward the origin.
Solution:
- Take 1 left shoe and 1 right shoe, which gives one usable pair.
- Adding a second left shoe without a right shoe gives no extra satisfaction, so the consumer stays on the same indifference curve.
- The curve therefore runs horizontally and vertically from a corner point, forming a right angle (an "L").
Which option fits?
- A is wrong because a straight line applies to perfect substitutes.
- D is wrong because curvature applies to ordinary imperfect substitutes.
- B (right-angled) and C (L-shaped) describe essentially the same shape.
Exam tip: Remember "Substitutes = Straight line, Complements = Corner (L-shape)". If two options seem to describe the same shape, pick the standard textbook wording, which here is "L-shaped".
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