Price Consumption Curve and Individual Demand curve
Income Consumption Curve. Engel Curves
Lecture 6. Changes in consumer choice. Consumer Behavior Simulation
Holding the price of all goods constant, the income consumption curve for a good is the set of optimal bundles as income varies.
With the help of Income Consumption Curve we can plot Engel curve – the curve that shows the relationship between the quantity of a good consumed and income.
There are several configuration of Engel curve according to categories of goods it represents.
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