After Joyce and Larry purchased their first house, they made additional home improvements in response to increases in income. After a while, their income rose so much that they could afford a larger home. Once they realized they would be moving, they reduced the amount of home improvements. Their Engel curve for home improvements on their current home is: flat. thin downward sloping curves that never cross. Thick. backward bending. positively sloped.
After Joyce and Larry purchased their first house, they made additional home improvements in response to increases in income. After a while, their income rose so much that they could afford a larger home. Once they realized they would be moving, they reduced the amount of home improvements. Their Engel curve for home improvements on their current home is: flat. thin downward sloping curves that never cross. Thick. backward bending. positively sloped.
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.14P
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After Joyce and Larry purchased their first house, they made additional home improvements in response to increases in income. After a while, their income rose so much that they could afford a larger home. Once they realized they would be moving, they reduced the amount of home improvements. Their Engel curve for home improvements on their current home is:
flat.
thin downward sloping curves that never cross.
Thick.
backward bending.
positively sloped.
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