Engel's law, also known as Engel's curve, is an economic theory that states that as income increases, the proportion of income spent on basic needs, such as food or housing, decreases. Developed by the German statistician Ernst Engel in the mid-19th century, Engel's law suggests that as individuals or households have more disposable income, they tend to allocate a smaller percentage of their income on necessities and instead spend more on non-essential goods and services, such as luxury items or recreational activities. This theory highlights the relationship between income levels and consumption patterns.
