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What are Indifference Curves for Perfect Substitutes and Complementary Goods?
It is very important for the students as the perfect substitutes means the utility of one product is the same as the utility of the other. In the representation of the curve for perfect substitution all lines are straight. If a consumer purchase all goods from any of the companies will not affect the value of the other. These are mostly homogeneous. If you consider two different fast food companies as McDonalds and Burger King, there will be no issue if a consumer takes all the services of only one service provider.
On the other hand, Complementary goods totally depend on one another. These are illustrated through various right angle lines and consumption of any of the goods directly depend on the other. If you see the term perfect substitutes and complementary goods, they are just opposite to one another. For example- The relationship between TV and Cable network or others.
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