Management Notes

Reference Notes for Management

Engel Curve – Cardinal Utility Approach | Microeconomics

Engel Curve

Engel Curve 

An Engel curve is a curve that shows the optimum quantity of a commodity purchased at different levels of income. In other words, Engel’s curve indicates how much quantity of a commodity a consumer will consume at different levels of his income in order to be in equilibrium. When prices and preferences are constant, the Engel Curve is the locus of all quantity demand points for the goods at various income levels. The Engel curve was named for German statistician Ernst Engel (1821-96) and represents a relationship between the demand for a good and the income of its buyers, the former depending on the latter. An individual’s Engel curve, however, can be obtained from his ICC.

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