<p>Consider a perfectly inelastic (Marshallian) demand curve for a good X. Does this good also have a vertical Hicksian demand curve?</p>

CC BY-SA 4.0
2019-04-29T20:08:11.210Z
Seems like a homework problem. What have you tried? Hint, for quasi-linear preferences, the non-linear good has perfectly inelastic Marshallian demand. Solve for the Hicksian demand function.  Is it perfectly elastic? Also, can a good actually have globally perfectly inelastic preferences?
BKay
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2019-04-30T09:10:38.903Z
I have tried to draw it with quasilinear preferences. At an interior optimum, there is a negative hicksian substitution effect, which indicates that hicksian demand won't be perfectly inelastic. However, can it be that both income and substitution effects are zero? Further, if income and substitution effects are equal and opposite to each other (which will give a vertical Marshallian demand curve), is it still a normal good?
PGupta
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2019-04-30T14:18:12.083Z
What if demand is inelastic at a quantity of zero? That's one way to ensure no income effect from the price change.
BKay
<elasticity><demand>
Can there be a good which has both Hicksian and Marshallian demand curves vertical?
PGupta
# Can there be a good which has both Hicksian and Marshallian demand curves vertical?

(Asked by: username_0 on 2019-04-29)

Consider a perfectly inelastic (Marshallian) demand curve for a good X. Does this good also have a vertical Hicksian demand curve?

**Tags:** elasticity, demand
> **Comments:**
> **username_1**: Seems like a homework problem. What have you tried? Hint, for quasi-linear preferences, the non-linear good has perfectly inelastic Marshallian demand. Solve for the Hicksian demand function.  Is it perfectly elastic? Also, can a good actually have globally perfectly inelastic preferences?  
> **username_0**: I have tried to draw it with quasilinear preferences. At an interior optimum, there is a negative hicksian substitution effect, which indicates that hicksian demand won't be perfectly inelastic. However, can it be that both income and substitution effects are zero? Further, if income and substitution effects are equal and opposite to each other (which will give a vertical Marshallian demand curve), is it still a normal good?  
> **username_1**: What if demand is inelastic at a quantity of zero? That's one way to ensure no income effect from the price change.  

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## 0 answers

