Question
Suppose that preferences are such that indifference curves are parallel shift along the identity line. That is, if x~ y then x+(a,...,a) ~ y+(a,...,a). Call
Suppose that preferences are such that indifference curves are parallel shift along the identity line. That is, if x~ y then x+(a,...,a) ~ y+(a,...,a). Call these preferences parallel.
• Find a class of utility functions that represents all parallel preferences.
• What are the preferences that are homothetic and parallel?
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1 ans generally the preferences that are used to represent a ...
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Intermediate Microeconomics
Authors: Hal R. Varian
8th edition
393934241, 978-0393934243
