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Engel curve - Wikipedia

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In microeconomics, an Engel curve describes how household expenditure on a particular good or service varies with household income.[1][2] There are two varieties of Engel curves. Budget share Engel curves describe how the proportion of household income spent on a good varies with income. Alternatively, Engel curves can also describe how real expenditure varies with household income. They are named after the German statistician Ernst Engel (1821–1896), who was the first to investigate this relationship between goods expenditure and income systematically in 1857. The best-known single result from the article is Engel's law which states that as income grows, spending on food becomes a smaller share of income; therefore, the share of a household's or country's income spent on food is an indication of their affluence. Graphically, the Engel curve is represented in the first quadrant of the Cartesian coordinate system. Income is shown on the horizontal axis and the quantity demanded for the

Engel curve - Wikipedia Jump to content From Wikipedia, the free encyclopedia Curve describing how household income varies with household expenditure In microeconomics , an Engel curve describes how household expenditure on a particular good or service varies with household income. [ 1 ] [ 2 ] There are two varieties of Engel curves. Budget share Engel curves describe how the proportion of household income spent on a good varies with income. Alternatively, Engel curves can also describe how real expenditure varies with household income. They are named after the German statistician Ernst Engel

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