1. Education
Send to a Friend via Email
You can opt-out at any time. Please refer to our privacy policy for contact information.

Definition of Engel Curve


Definition: On a graph with good 1 on the horizontal axis and good 2 on the vertical axis, envision a convex indifference curve, and a diagonal budget constraint that meets it at one point. Now move the budget constraint in and out and mark the points where the tangencies with indifference curves are. The locus of such points is the Engel curve -- it's the mapping from wealth into the space of the two goods. That is, the Engel curve is (x(w), y(w)) where w is wealth and x() and y() are the amounts of each of the goods purchased at those levels of wealth. (Econterms)

Terms related to The Engel Curve:

About.Com Resources on The Engel Curve:

Writing a Term Paper? Here are a few starting points for research on The Engel Curve:

Books on The Engel Curve:

Journal Articles on The Engel Curve:

©2014 About.com. All rights reserved.