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Engel’s Law- Definition, History and Modern Day Implications: 6 Things to know

What is Engel’s Law? Engel’s law is one of the cornerstones of macroeconomic and income studies. Ernst Engel first observed the pattern now known as Engel’s Law in the Prussian census of 1817-1818. He noticed that as incomes increased, households spent a smaller portion of their income on food consumption than those with lower incomes. …

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