After Joyce and Larry purchased their first house,they made additional home improvements in response to increases in income.After a while,their income rose so much that they could afford a larger home.Once they realized they would be moving,they reduced the amount of home improvements.Their Engel curve for home improvements on their current home is
A) negatively sloped.
B) flat.
C) positively sloped.
D) backward bending.

Question

Quizplus · Accepted Answer

The Engel curve for home improvements on their current home is likely to be backward bending, as they reduced the amount of home improvements once their income rose to the point where they could afford a larger home. This suggests that their demand for home improvements decreased as their income increased, which is consistent with a backward bending Engel curve.

After Joyce and Larry Purchased Their First House,they Made Additional