Asked by
Javier Stephen
on Oct 14, 2024
Verified
If preferences are quasilinear, then for very high incomes the income offer curve is a straight line parallel to one of the axes.
Quasilinear Preferences
Consumer preferences where the utility function is linear in one of the goods, indicating constant marginal utility for that good.
Income Offer Curve
A graphical representation showing how an individual's optimal choice of goods to consume changes as their income changes.
- Gain an understanding of quasilinear and homothetic preferences along with their implications.
Verified Answer
NV
Learning Objectives
- Gain an understanding of quasilinear and homothetic preferences along with their implications.