The observation that as family income rises, the percentage spent on food declines, the percentage spent on housing remains constant and both the percentage spent on other categories and that devoted to savings increase is known as:

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Engel's law states that as family income increases, the percentage spent on food decreases, the percentage spent on housing remains constant, and the proportion of income spent on other categories such as savings and discretionary items increases. This observation was first made by Ernst Engel, a German statistician, in the mid-19th century.

The Observation That as Family Income Rises, the Percentage Spent