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What do you mean by Engel curve?

The Engel curve is used to describe the expenditure of a household on a specific good which differs with different income in the household. Engel curves are categorized in two varieties. One is budget share Engel curves which help in explaining the segments of income in the household which is spent on a good, and it differs with the difference in the income. As seen alternatively, Engel curves are also helpful in explaining how the expenditure of a household can differ or changes when the incomes of the household are changed.

This theory is named after Ernst Engel, who was a German statistician who came up with this theory by finding the relationship between the income of the household and the expenditure on a specific good in the household. Engel curve also defines Engel’s law.In order to understand the history of this curve better, you will need our guidance for quality content. Register for Engle curve assignment help and see it yourself.

What is Engel’s law?

Engel’s law states that when a family is poor, they share larger budget that is dedicated to nourishment. In order to know more about the same, students can get an expert assistance with Engle curve homework help.

Graphical Definition:

Let’s consider a graph with horizontal axis depicted to product A and vertical axis to product B.  There will be one point on the graph where the curve of convex indifference and diagonal budget constraint will meet. When you move the constraint of budget from in and out, you will notice several tangencies of difference in curves. The locus of these points is known as Engel’s curve.

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We can say here that, Engel curve is,

(X (w), Y (w))

Where w is the wealth and amount of each product is represented by X ( ) and Y ( )

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