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