Learning Contents:                                                              ·          Basic Introduction to   substitute goods, Indifference curve and MRS ·          Indifference curve of   Perfect substitutes Introduction It is very important to revise the concepts of substitute goods, Indifference curve, and Marginal Rate of Substitution (MRS) to have a clear understanding of the Indifference curve of perfect substitutes. Substitute goods Substitute goods are those goods that can be used in place of each other. Consumers do not find any much difference in these goods and consider them equal such as two brands of tea, mineral water, soaps, soft drinks, etc. These goods serve same purpose for the consumers. Indifference curve An indifference curve refers to all those combinations of two goods that give the consumer an equal level of satisfaction or utility. Since all the combinations offer the same amount of satisfaction, the consumer prefers them equally. H