Engel curve

Definition

The Engel curve for a good, service, or commodity is defined with the following backdrop:

• The specific good, service, or commodity.
• A unit for measuring the quantity of that commodity.
• An economic actor (individual or household).
• A time frame within which demand and income are measured.
• An economic backdrop that includes the unit price of the commodity and all other determinants of demand except the income of the economic actor.

The Engel curve is a curve drawn as follows:

• The vertical axis is the income axis, measuring the income of the economic actor within the time frame.
• The horizontal axis is the quantity demanded by the economic actor within the time frame for the given income.