Engel's Law

Discipline: Economics

Formulated by German-born statistician Ernst Engel (1821-1896), Engel's Law states that as incomes increase, the proportion of income spent on food falls.

Engel's Law is accepted as a basic principle of income and consumption.

Source:
E Engel, Die Productions und Consumptions-verhaltnisse des Königsreiche Sachsen (Berlin, 1877)

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