Question
In order to obtain a good whose Engel curve is hump-shaped (i.e., a good that is initially normal but later inferior as income increases), we
In order to obtain a good whose Engel curve is hump-shaped (i.e., a good that is initially normal but later inferior as income increases), we must have preferences that are not well-behaved (i.e., indifference curves overlap as you increase the budget constraint). What assumption from the unit on preferences, constraints and utility should be violated for this to happen?
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Elements Of Chemical Reaction Engineering
Authors: H. Fogler
6th Edition
013548622X, 978-0135486221
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