Using a choice diagram (like the one from Perloff used in the slides and copied below for your convenience) explain why EV=CV for quasilinear preferences,

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
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Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.3P
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Using a choice diagram (like the one from
Perloff used in the slides and copied below
for your convenience) explain why EV=CV for
quasilinear preferences.
Y+ CV
CV
EV
Y- EV
LEV
LCV
4,. Music tracks per quarter
La
12
24
92, Live music, Units per quarter
Transcribed Image Text:Using a choice diagram (like the one from Perloff used in the slides and copied below for your convenience) explain why EV=CV for quasilinear preferences. Y+ CV CV EV Y- EV LEV LCV 4,. Music tracks per quarter La 12 24 92, Live music, Units per quarter
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