Question

Engel's Law states the relationship between ____________.

• A. quantity demanded and price of a commodity
• B. quantity demanded and price if substitutes
• C. quantity demanded and testes of the consumers
• D. quantity demanded and income of the consumers

Answer 1

Answer: (D)

quantity demanded and income of the consumers

Engel law states that, as the income of an individual rises, the proportion of income spent on food reduces. This is because regardless of rise in income the amount of food you consumer will not increase as much as the income increases.