Answer to Question #241725 in Microeconomics for Boss

Question

True or False?

Tastes for perfect substitutes are both homothetic and quasilinear.

Answer 1

True.

Explanation -

The MRS for such tastes is the same everywhere --- which implies it is the same along any ray from the origin (required for homotheticity)and along any vertical or horizontal ray (implying quasilinearity in both goods).