Consumer surplus is accurately measured along (uncompensated) demand curves when tastes are quasilinear.

Question

Quizplus · Accepted Answer

Quasilinear preferences are those in which individuals have a linear utility function for one good and a nonlinear utility function for all other goods. In such cases, consumer surplus can be accurately measured along the demand curve, as the value of the linear good is fixed and unaffected by changes in the market price of the other goods.

Consumer Surplus Is Accurately Measured Along (Uncompensated) Demand Curves When