Question

In the
case of interior goods consum
ption of commodity declines as income
increases
Engel
the slope
at​

Answer 1

Explanation:

8.34 is upward-sloping but is concave. This implies that slope of the Engel curve (∆M/∆Q) is declining with the increase in income. That is, in the Engel curve of a commodity depicted in Fig. 8.34 the equal increments in income result in successively larger increases in the quantity purchased of the commodity