Ernst Engel's laws generally have been supported by recent studies. He discovered that as family income rises, the percentage spent on ________declines and the percentage spent on ________remains about constant.
A) food; housing
B) clothing; recreation/entertainment
C) food; clothing
D) recreation/entertainment; savings
E) savings; transportation

Question

Ernst Engel's laws generally have been supported by recent studies. He discovered that as family income rises, the percentage spent on  ________declines and the percentage spent on  ________remains about constant.
A) food; housing
B) clothing; recreation/entertainment
C) food; clothing
D) recreation/entertainment; savings
E) savings; transportation

Quizplus · Accepted Answer

Engel's law states that as income increases, the proportion of income spent on food decreases, while the proportion spent on housing tends to stay relatively constant.

Ernst Engel's Laws Generally Have Been Supported by Recent Studies