Engel's law is consistent with the proposition that the income elasticity for primary products is less than unity.

Question

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Engel's law states that as income increases, the proportion of income spent on food decreases, while the proportion spent on other goods and services (such as housing, transportation, and leisure activities) increases. This suggests that the income elasticity of demand for primary products (such as food) is less than unity because as income rises, the percentage of income spent on these goods declines.

Engel's Law Is Consistent with the Proposition That the Income