How to Find Income Elasticity of Demand from Engel Curves?
The following article will guide you about how to find income elasticity of demand from Engel curves. Ernst Engel developed, on the basis of actual data, a law of consumption. Engel's law states that, the percentage of expenditure on food is high when family income is low and vice-versa. This is shown in following Table 1: It follows from the [...]