A person with a quasilinear utility function will
A)have a price elasticity of demand equal to zero for some goods.
B)have an income elasticity of demand equal to one for some goods.
C)necessarily consume zero quantity of some good.
D)necessarily consume positive amounts of every good.
E)none of the above.

Question

Quizplus · Accepted Answer

A quasilinear utility function implies that the marginal utility of one good is constant, leading to linear indifference curves for that good. This does not inherently imply any specific elasticity or consumption pattern described in the other options.

A Person with a Quasilinear Utility Function Will