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Which of the following curve describes the variation of household expenditure on a particular good with respect to household income ?
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- Demand curve
- Engel curve
- Great Gatsby curve
- Cost curve
- Demand curve
Correct Option: B
In microeconomics, an Engel curve describes how household expenditure on a particular good or service varies with household income. The curve is named after the German statistician Ernst Engel (1821–1896), who was the first to investigate this relationship between goods expenditure and income systematically in 1857.
