Asked by
hailey balestra
on Oct 25, 2024
Verified
An Engel curve is backward-bending when:
A) the good is inferior after a certain level of income.
B) the good is inferior at low levels of income.
C) the good is inferior for all levels of income.
D) the good is normal above a certain level of income.
Backward-Bending
Describes a labor supply curve that bends backwards at higher wage rates, indicating that higher wages can lead to a decrease in labor supplied due to income effects.
Engel Curve
A graphical representation showing the relationship between a consumer's income and the quantity of a good consumed, keeping all other factors constant.
- Gain an understanding of the principles pertaining to normal and inferior goods and their distinguishing attributes.
Verified Answer
KS
Learning Objectives
- Gain an understanding of the principles pertaining to normal and inferior goods and their distinguishing attributes.