In order to obtain a good whose Engel curve is hump-shaped (i.e., a good that is initially normal but later inferior as income increases), we must have preferences that are not well-behaved (i.e., indifference curves overlap as you increase the budget constraint). What assumption from the unit on preferences, constraints and utility should be violated for this to happen?

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To obtain a good with a humpshaped Engel curve where the good is initially normal but later becomes ... View the full answer