Use the following definitions for an individual who consumes only two goods,x and y:
sx = share of income spent on x.
sy = 1-sx.
= price elasticity of demand for x.
= price elasticity of demand for y.
ex,I = income elasticity of demand for x.
ey,I = income elasticity of demand for y.
= cross price elasticity of demand for x.
= cross price elasticity of demand for y.
-A generalization of Engel's Law is given by:
A) 
B) 
C) 
D) 
Correct Answer:
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