In the the angel curve is the representation of the demand one or several households after a property as a function of the height of the income. It is deduced from the income consumer curve. From its process it shows itself whether it concerns with the property a superiores (rising) or inferiores (falling) property.

The Engel law mentioned that the demand for food with rising income increases, the portion of the expenditures for food of the income however decreases (income elasticity smaller one), i.e. the angel curve for expenditures for food shows a under-proportionally rising process. It forms thereby the micro-economic counterpart to Keynes' for fundamentally psychological law in the (absolute income hypothesis, keynesianische consumer function).

see also: Income effect

This text be based on the micro economics glossary of professor Wilhelm Lorenz and is licensed under GNU-FDL.

Articles in category "Angel curve"

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