Income Offer Curve
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
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.