An Engel curve for good describes
A) how the consumption of good varies as the price of good changes.
B) how the consumption of good varies as the consumer's income changes.
C) how the consumption of good varies as the consumption of good changes.
D) how the consumption of good varies as price-consumption curve changes.

Question

An Engel curve for good  describes
A) how the consumption of good varies as the price of good changes. 
B) how the consumption of good varies as the consumer's income changes. 
C) how the consumption of good varies as the consumption of good changes. 
D) how the consumption of good varies as price-consumption curve changes.

Quizplus · Accepted Answer

An Engel curve shows how the quantity of a good consumed by a consumer changes as their income changes. Therefore, option B is the correct answer. Option A describes a price consumption curve, option C describes a cross-price elasticity of demand curve, and option D is not a relevant concept in this context.

An Engel Curve for Good Describes