Engel

Engel’s Law states that as a household’s income increases, the proportion of that income spent on food decreases, even if actual spending on food may rise. This phenomenon occurs because food is a basic necessity, and once basic needs are met, additional income is allocated to other expenses like education, healthcare, or leisure. In essence, wealthier families tend to spend a smaller percentage of their income on food compared to lower-income households, reflecting changes in household priorities and spending patterns as income levels grow.