-When John's income was low,he could not afford to dine out and would respond to a pay raise by purchasing more frozen dinners.Now that his income is high,a pay raise causes him to dine out more often and buy fewer frozen dinners.Which graph in the above figure best represents John's Engel curve for frozen dinners?
A) Graph A
B) Graph B
C) Graph C
D) Graph D

Question

-When John's income was low,he could not afford to dine out and would respond to a pay raise by purchasing more frozen dinners.Now that his income is high,a pay raise causes him to dine out more often and buy fewer frozen dinners.Which graph in the above figure best represents John's Engel curve for frozen dinners?
A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D

Quizplus · Accepted Answer

As John's income increases, he buys fewer frozen dinners. This is represented by a downward-sloping Engel curve, which is Graph A.

-When John's Income Was Low,he Could Not Afford to Dine