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Questions › JNU › JNU SIS 2018 › Q30
2 marks, −1Microeconomics › Consumer preferences and utility › Homothetic and quasilinear preferencesModerateabout 2 min

JNU SIS 2018 Question 30: Consumer preferences and utility

Which of the following is true for a utility function of the form

U(x1,x2)=x2+u(x1)U(x_1, x_2) = x_2 + u(x_1)U(x1​,x2​)=x2​+u(x1​)

where uuu is an increasing function of x1x_1x1​?

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Plain-text version

Which of the following is true for a utility function of the form U(x₁, x₂) = x₂ + u(x₁) where u is an increasing function of x₁? (A) The indifference curves are radial translates of one another (B) The indifference curves are vertically parallel (C) The Engel curves are straight lines through the origin (D) None of the above

Also written as: Which of the following is true for a utility function of the form U(x_1, x_2) = x_2 + u(x_1) where u is an increasing function of x_1?

Consumer preferences and utility has come up 93 times in 7 exams since 2007.

What this question tests

This question is on Homothetic and quasilinear preferences, part of Consumer preferences and utility in Microeconomics.

Preferences whose expansion paths are straight lines (homothetic), or whose demand for one good ignores income (quasilinear).

TestStop has 5 past-paper questions on this subtopic.

Practise Consumer preferences and utilityMore on Homothetic and quasilinear preferences

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Question from the JNU SIS 2018 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.