Compare the following two pairs of goods:• Coke and Pepsi• Skis and ski bindingsa. In which case are the two goods complements? Inwhich case are they substitutes?b. In which case do you expect the indifferencecurves to be fairly straight? In which case do youexpect the indifference curves to be very bowed?c. In which case will the consumer respond more to achange in the relative price of the two goods?

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.7P
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Compare the following two pairs of goods:
• Coke and Pepsi
• Skis and ski bindings
a. In which case are the two goods complements? In
which case are they substitutes?
b. In which case do you expect the indifference
curves to be fairly straight? In which case do you
expect the indifference curves to be very bowed?
c. In which case will the consumer respond more to a
change in the relative price of the two goods?

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