JAMB 2019 Economics · Question 72

In the case of highly or close complementary goods, the indifference curve is_______

Options

  1. A.A straight line
  2. B.A right-angled
  3. C.L - shaped
  4. 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:

  1. Take 1 left shoe and 1 right shoe, which gives one usable pair.
  2. Adding a second left shoe without a right shoe gives no extra satisfaction, so the consumer stays on the same indifference curve.
  3. 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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