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<p>What I have derived here is more appropriately called Engel curve. </p>

CC BY-SA 4.0
2018-09-27T21:26:16.183Z
Thanks for the contribution. But please be aware of the site's policy on the use of scanned images.
Herr K.
CC BY-SA 4.0
2018-09-27T16:39:48.483Z
2018-09-27T16:39:48.483Z
DrStrangeLove
<p>Sorry if this is a basic question, however I have no idea on how to derive an equation for an income offer curve. All the explanations I'm getting is the graphical one where you just connect the different optimum points. It would be really helpful if someone can explain how do you derive an equation for such given any utility function. </p>

CC BY-SA 4.0
2018-09-27T16:21:43.427Z
Hint: Solve a utility maximization problem $\max_{x,y}u(x,y)$ subject to budget constraint $p_xx+p_yy\le m$. The optimal solutions, $x^*(m,p_x,p_y)$ and $y^*(m,p_x,p_y)$, are functions of income and prices. Hold prices constant (i.e. slope of budget line is constant) and plot $x^*(m)$ and $y^*(m)$.
Herr K.
<consumer-theory>
Deriving equation for income offer curve
Sumukh Sai
# Deriving equation for income offer curve

(Asked by: username_0 on 2018-09-27)

Sorry if this is a basic question, however I have no idea on how to derive an equation for an income offer curve. All the explanations I'm getting is the graphical one where you just connect the different optimum points. It would be really helpful if someone can explain how do you derive an equation for such given any utility function.

**Tags:** consumer-theory
> **Comments:**
> **username_1**: Hint: Solve a utility maximization problem $\max_{x,y}u(x,y)$ subject to budget constraint $p_xx+p_yy\le m$. The optimal solutions, $x^*(m,p_x,p_y)$ and $y^*(m,p_x,p_y)$, are functions of income and prices. Hold prices constant (i.e. slope of budget line is constant) and plot $x^*(m)$ and $y^*(m)$.  

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## 1 answers

### Answer by username_2 on 2018-09-27. Score: 1 | Accepted answer

[![enter image description here](https://i.sstatic.net/Iw5sX.jpg)](https://i.sstatic.net/Iw5sX.jpg)

What I have derived here is more appropriately called Engel curve.

> **Comments:**
> **username_1**: Thanks for the contribution. But please be aware of the site's policy on the use of scanned images.  

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