If preferences are quasilinear, then for very high incomes the income offer curve is a straight line parallel to one of the axes.

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Quizplus · Accepted Answer

This is true because quasilinear preferences mean that one good is treated as a necessity (linear in income) and the other good is treated as a luxury (independent of income). Therefore, as income increases, only the quantity demanded of the luxury good will change, causing the income offer curve to be a straight horizontal line parallel to the axis of the luxury good.

If Preferences Are Quasilinear, Then for Very High Incomes the Income