Ernst Engel's Laws Generally Have Been Supported by Recent Studies

question 14

Multiple Choice

Ernst Engel's laws generally have been supported by recent studies. He discovered that as family income rises, the percentage spent on ________declines and the percentage spent on ________remains about constant.

• A) food; housing
• B) clothing; recreation/entertainment
• C) food; clothing
• D) recreation/entertainment; savings
• E) savings; transportation

---

Definitions:

Mode Mix

Refers to the combination of different types of transportation modes used in delivering goods, optimizing for efficiency and cost.

Order Management

The administrative process involved in handling and tracking customer orders from placement through delivery.

Stockouts

Occur when an item is not in stock and cannot be provided to the customer, leading to potential sales loss and customer dissatisfaction.

Order Fill Rate

A metric that measures the percentage of customer or sales orders fulfilled from stock available at the time the order is placed.