Income Offer Curve

… a core term used in Economic Analysis and Atlas102

Definition

Haydon Economics (reference below) defines income offer curve as a line that depicts the optimal choice of two goods at different levels of income at constant prices.

Haydon Economics writes:

“The income offer curve is also known as the income expansion path. If both goods are normal goods, then the income expansion path will have a positive slope. … If we hold the prices of goods 1 and 2 fixed and look at how demand changes as we change income, we generate a curve known as the Engel curve. The Engel curve is a graph of the demand for one of the goods as a function of income, with all prices being held constant.”

Atlas topic, subject, and course

Consumer Theory and Elasticity of Demand and Supply (core topic) in Economic Analysis and Atlas102 Economic Analysis.

Source

Hayden Economics, Microeconomics, Income Offer Curves and Engel Curves, at http://www.rhayden.us/microeconomics/income-offer-curves-and-engel-curves.html, accessed 18 May 2016.

Page created by: Ian Clark, last modified 18 May 2016.