Question

. If two goods are perfect substitutes, what is the demand function for good 2?

Answer 1

We know that if the goods are perfect substitutes, then the consumer must be indifferent between them.

Cases:

$p_2>p_1$ : Consumer will be satisfied with good1 and spend all his money on good 1.

$p_1>p_2$ : Consumer will be satisfied with good2 and spend all his money on good 2.