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      Question

      For which preferences the income offer curve

      and the price offer curve are equal?
      A Convex Correct Answer Incorrect Answer
      B Concave Correct Answer Incorrect Answer
      C Perfect substitute Correct Answer Incorrect Answer
      D Perfect complements Correct Answer Incorrect Answer

      Solution

      Income offer curve is a line that depicts the optimal choice of two goods at different levels of income at constant prices.

      Price offer curve is a line that depicts the optimal choice of two goods as price of 1 good change holding the price of other good and income fixed.

      For perfect complements preferences, the two curves are the same.

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