A graph that plots the consumer's level of consumption of a good against the consumer's income is called a(n):
A)price-consumption curve.
B)Engel curve.
C)demand curve.
D)good-consumption curve.

Question

Quizplus · Accepted Answer

The graph described in the question is known as an Engel curve. It shows the relationship between a consumer's income and their level of consumption of a specific good. The curve is named after economist Ernst Engel who first described the relationship in the mid-19th century. A price-consumption curve shows the relationship between the price of a good and the quantity demanded, a demand curve shows the relationship between the price of a good and the quantity demanded by all consumers in the market, and a good-consumption curve is not a commonly used term in economics. A graph that plots the consumer's level of consumption of a good against the consumer's income is called an Engel curve. It shows how changes in income affect the quantity demanded of a particular good or service at a constant price level. It can help to identify whether a good is normal or inferior, depending on the slope of the curve. A normal good will have a positive slope, while an inferior good will have a negative slope.

A Graph That Plots the Consumer's Level of Consumption of a Good