Engel’s Law (1857)
Formulated by German-born statistician Ernst Engel (1821-1896), Engel’s Law states that as incomes increase, the proportion of income spent on food falls. Engel’s Law is accepted as a basic principle of income and consumption. SOURCE: E ENGEL, DIE PRODUCTIONS UND CONSUMPTIONS-VERHALTNISSE DES KÖNIGSREICHE SACHSEN (BERLIN, 1877) Engel’s law is an observation in economics stating that, as income rises, the proportion of