<p>It is the change in the demand of $x_1$ and $x_2$ for different levels of income $m$ (when we shift the budget curve out). Intuitively, how will your consumption of the two goods change when income changes. If we let $x_1$ be bus tickets and $x_2$ taxi rides, then if your income increases, we might expect that you will takes the bus less and the taxi more often. </p>

<p><img src="https://i.sstatic.net/YngFA.png" alt="enter image description here"></p>

CC BY-SA 3.0
2015-03-20T14:03:05.787Z
2015-03-20T14:03:05.787Z
Rud Faden
<p>Income offer curve define as the curve which depicts the optimal choice of two goods at different levels of income at constant price. It is otherwise known as "Income Expansion Path". For normal goods its shape is upward sloping starting from the origin whereas in case of inferior goods its shape is a backward bending curve.</p>

<p>Examples: <br> For perfect substitutes goods the income offer curve takes the shape of a horizontal or vertical straight line depending on the price ratio, whereas in case of perfect complements it is straight line from the origin with a positive slope.   </p>

CC BY-SA 4.0
2019-04-13T04:39:02.087Z
2019-04-13T06:25:10.450Z
2019-04-13T06:25:10.450Z
subal danta
<p>Can anybody explain to me the income offer curve? Is it a relationship between $x_1$ and $m$? If the budget equation is $p_1x_1+p_2x_2=m$? With income being the variable $m$?</p>

<microeconomics>
Income Offer Curve In Basic Microeconomics
Ethan Mark
# Income Offer Curve In Basic Microeconomics

(Asked by: username_0 on 2015-02-12)

Can anybody explain to me the income offer curve? Is it a relationship between $x\_1$ and $m$? If the budget equation is $p\_1x\_1+p\_2x\_2=m$? With income being the variable $m$?

**Tags:** microeconomics


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## 2 answers

### Answer by username_1 on 2015-03-20. Score: 3

It is the change in the demand of $x\_1$ and $x\_2$ for different levels of income $m$ (when we shift the budget curve out). Intuitively, how will your consumption of the two goods change when income changes. If we let $x\_1$ be bus tickets and $x\_2$ taxi rides, then if your income increases, we might expect that you will takes the bus less and the taxi more often.

![enter image description here](https://i.sstatic.net/YngFA.png)


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### Answer by username_2 on 2019-04-13. Score: 0

Income offer curve define as the curve which depicts the optimal choice of two goods at different levels of income at constant price. It is otherwise known as "Income Expansion Path". For normal goods its shape is upward sloping starting from the origin whereas in case of inferior goods its shape is a backward bending curve.

Examples:   
 For perfect substitutes goods the income offer curve takes the shape of a horizontal or vertical straight line depending on the price ratio, whereas in case of perfect complements it is straight line from the origin with a positive slope.


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