Examlex
Which of the following is True of illness anxiety disorder?
Perfect Substitutes
Perfect substitutes are products or services that can be used in exactly the same way, offering the same utility to consumers, thus one can replace the other without loss of value or function.
Homothetic Preferences
Consumer preferences that are consistent or proportionate across different scales or levels of consumption, indicating a straight line through the origin in a utility function graph.
Quasilinear Preferences
Preferences where utility is a linear function of one good, making the consumer's marginal rate of substitution between goods independent of the level of consumption of that good.
Convex Preferences
Consumer preferences where the consumer prefers averages or mixes of goods to extremes, represented graphically by convex indifference curves.
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