What types of goods have downward-sloping Engel curves?
A) Normal goods only.
B) Inferior goods only.
C) Giffen goods only.
D) All types of goods.

Question

Quizplus · Accepted Answer

Only inferior goods have downward-sloping Engel curves, as income increases the demand for these goods decreases. Normal goods have upward-sloping Engel curves, meaning that as income increases, the demand for these goods also increases. Giffen goods are a rare type of inferior good that have an upward-sloping demand curve, but they are not commonly observed in real-world markets.

What Types of Goods Have Downward-Sloping Engel Curves