An upward-sloping Engel curve indicates that
A) the good is normal.
B) the good is inferior.
C) demand for this good is elastic.
D) demand for this good is inelastic.

Question

Quizplus · Accepted Answer

An upward-sloping Engel curve indicates that as income increases, the quantity demanded of the good also increases. This is indicative of a normal good, as opposed to an inferior good where quantity demanded decreases as income increases. Elasticity of demand cannot be determined solely from the shape of the Engel curve.

An Upward-Sloping Engel Curve Indicates That