Assuming that good “x” is measured on the x-axis and good “y” is measured on the y-axis, if the utility for the two goods “x” and “y” can be measured as U = y, then it can be concluded that
A) “x” and “y” are perfect complements.
B) “x” is a “bad”.
C) the indifference curves on the x,y graph are upward sloping.
D) the indifference curves on the x,y graph are horizontal.
ANSWER
D
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