Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Which of the following is correct about Engel's Law?

1) When income increases, Proportionate expenditure on food increases.
2) When Income increases, Proportionate Expenditure on food decreases

Select the correct answer using the code given below:

• A. 1 Only
• B. 2 only
• C. Both 1 and 2
• D. None of the above

Answer 1

The correct option is B 2 only

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> According to Engel's law the proportionate expenditure on food decreases even though actual expenditure increases as income rises.