Question

explain the concept of income consumption and Engle curve​

Answer 1

• Each point of an Engel curve corresponds to a relevant point of income consumption curve. Thus R' of the Engel curve EC corresponds to point R on the ICC curve. As seen from panel (b), Engel curve for normal goods is upward-sloping which shows that as income increases, consumer buys more of a commodity.

Answer 2

Answer:

This indicates that with every equal increase in income, expansion in quantity purchased of the good successively declines. This upward-sloping Engel curve with increasing slope as income rises depicts the case of necessities, consumption of which increases relatively less as income rises.