An Engel curve for good $x$ describes:
A)how the consumption of good $x$ varies as the price of good
$x$ changes.
B)how the consumption of good $x$ varies as the consumer's income changes.
C)how the consumption of good $x$ varies as the consumption of good
$y$ changes.
D)how the consumption of good $x$ varies as price-consumption curve changes.

Question

Quizplus · Accepted Answer

An Engel curve shows how the consumption of a good varies as the consumer's income changes. It is a graphical representation of the income elasticity of demand for the good. Engel curve shows the relationship between quantity demanded of a good and consumer's income. Therefore, option B is the correct answer. Option A describes the price consumption curve, option C describes cross-price elasticity, and option D is not a relevant concept.

An Engel Curve for Good xxx Describes: A)how the Consumption of Good

An Engel Curve for Good $x$ Describes:
A)how the Consumption of Good