Suppose a consumer has strictly convex preferences and her Engel curve for a good is a vertical line for some range of income.In that same income range, her demand curve for the good slopes down.

Question

Quizplus · Accepted Answer

If the Engel curve is a vertical line for some range of income, it means that the consumer is willing to spend the same amount on the good regardless of changes in income. Since the preferences are strictly convex, the demand curve must slope down in that income range, as the consumer would want to purchase less of the good as price increases. This is consistent with the law of demand.

Suppose a Consumer Has Strictly Convex Preferences and Her Engel