Question

Derive the Engel curve from the utility function?

Answer 1

To derive an Engel curve from a utility function, follow these steps: identify the utility function, derive the demand function, and plot the demand function on a graph.

Step-by-step explanation:

An Engel curve shows the relationship between the quantity of a good consumed and a consumer's income level.

To derive an Engel curve from a utility function, you need to express the utility function in terms of the good's quantity and the consumer's income. The basic steps to derive the Engel curve are:

1. Identify the utility function, which represents the consumer's preferences for the good and income.
2. Derive the demand function for the good, which shows how the quantity demanded changes with income.
3. Plot the demand function on a graph with quantity on the x-axis and income on the y-axis to obtain the Engel curve.