Engelberger's Law

Engelberger's Law states that as people's income increases, the proportion of their income spent on basic needs like food, clothing, and housing decreases. In other words, wealthier individuals tend to spend a smaller percentage of their income on essentials and more on non-essential items or experiences. This pattern helps businesses and economists understand consumption habits, indicating that demand for luxury or discretionary products grows more significantly as income rises, while demand for basic necessities grows more slowly or may even decline in relative terms.