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Sarah Jones Believes That Coke and Pepsi Are Perfect Substitutes

Question 27

Multiple Choice

Sarah Jones believes that Coke and Pepsi are perfect substitutes.That is,she is equally happy with a Coke or a Pepsi and cannot tell the difference between them.Her indifference curves:


A) are linear, with slope equal to -1.
B) are upward-sloping.
C) are linear, with slope equal to 1.
D) cross where she consumes equal amounts of Coke and Pepsi.
E) cannot be defined, since she likes both equally well.

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