Asked • 04/16/19

Are homothetic preferences monotonic?

I'm trying to understand intuitively what a homothetic preference is, and I am still not quite there. I understand the definition, that a homothetic preference implies that the slope of the indifference curve remains constant along any ray from origin.But intuitively, like in real life, how would we know that a preference is not homothetic? If its not strictly monotonically increasing (i.e. you don't prefer more of a product to less of it always), does it mean that the preference is not homothetic? Can someone give an example of what exactly is not a homothetic preference so I understand what is?

1 Expert Answer

By:

Still looking for help? Get the right answer, fast.

Ask a question for free

Get a free answer to a quick problem.
Most questions answered within 4 hours.

OR

Find an Online Tutor Now

Choose an expert and meet online. No packages or subscriptions, pay only for the time you need.