Which one of the following statements about preferences is true? O Quasilinear tastes can be defined, such that if (x₁, x2)> (1. y2), then (tx₁, x2) > (ty1, ty2) O Homothetic preferences have the same MRS on a ray from the origin, whereas quasilinear preferences have the same MRS on a vertical ray. O The MRS for perfect complements is 0 on the vertical part of the indifference curve, -∞ on the horizontal part of the indifference curve and undefined at the kink. then the consumer will optimize by consuming only good O If goods X and Y are perfect substitutes (with X measured on the horizontal axis) and the MRS MUX Px MUY Py O The Engel curve for a normal good will bend backwards, whereas the Engel curve for an inferior good will slope upwards. O No answer.

Which one of the following statements about preferences is true? O Quasilinear tastes can be defined, such that if (x₁, x2)> (1. y2), then (tx₁, x2) > (ty1, ty2) O Homothetic preferences have the same MRS on a ray from the origin, whereas quasilinear preferences have the same MRS on a vertical ray. O The MRS for perfect complements is 0 on the vertical part of the indifference curve, -∞ on the horizontal part of the indifference curve and undefined at the kink. then the consumer will optimize by consuming only good O If goods X and Y are perfect substitutes (with X measured on the horizontal axis) and the MRS MUX Px MUY Py O The Engel curve for a normal good will bend backwards, whereas the Engel curve for an inferior good will slope upwards. O No answer.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.9P

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