The Utility Function: is
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1 mark, −0.33MicroeconomicsConsumer preferences and utilityHomothetic and quasilinear preferencesHardabout 2 min
UoH 2020 Question 88: Consumer preferences and utility
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The Utility Function: U(x, y) = √(x² + y²) is (A) Homothetic and the Indifference Curve is Convex (B) Homothetic and the Indifference Curve is Concave (C) Nonhomothetic and the Indifference Curve is Convex (D) Nonhomothetic and the Indifference Curve is Concave
Also written as: The Utility Function: U(x, y) = sqrt(x^2 + y^2) is
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).
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