📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store
  • ✖

      Question

      For which of the following preferences, Engel curve is

      not a straight line?
      A Perfect Complements Correct Answer Incorrect Answer
      B Perfect Substitutes Correct Answer Incorrect Answer
      C Quasilinear Preferences Correct Answer Incorrect Answer
      D Cobb Douglas Correct Answer Incorrect Answer

      Solution

      For homothetic functions, Engel curve is a straight line. As Quasilinear preferences are not homothetic, they do not have Engel curve with a straight line.

      Practice Next
      ask-question