Question

Q. Engel curve denotes
i.
Various amounts of goods that a consumer will be willing to purchase at various
price levels
ii.
Various amounts of goods which a consumer will be willing to buy at various
income levels
iii.
Various amounts of goods purchased when the price of substitutes rises
iv.
Relationship between income effect and substitution effect​

Answer 1

Answer:

The income effect expresses the impact of increased purchasing power on consumption, while the substitution effect describes how consumption is impacted by changing relative income and prices