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.
Chapter6: Demand Relationships Among Goods
Section: Chapter Questions
Problem 6.9P
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![Which one of the following statements about preferences is true?
O Quasilinear tastes can be defined, such that if (x1, x2) > (Y1₁. y2), then (tx1, tx2) > (ty1₁, 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.
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.
O
If goods X and Y are perfect substitutes (with X measured on the horizontal axis) and the MRS MUX> Px, then the consumer will optimize by consuming only good Y.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53d0abe2-4cb5-4db5-bef8-ebd7977db539%2F0717505d-613d-44b6-800d-4c8d03ef178b%2Fheuhxpb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which one of the following statements about preferences is true?
O Quasilinear tastes can be defined, such that if (x1, x2) > (Y1₁. y2), then (tx1, tx2) > (ty1₁, 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.
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.
O
If goods X and Y are perfect substitutes (with X measured on the horizontal axis) and the MRS MUX> Px, then the consumer will optimize by consuming only good Y.
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.
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