To Derive the Engel Curve, Which Shows the Relationship Between

question 21

Multiple Choice

To derive the Engel curve, which shows the relationship between the quantity of a good consumed and a consumer's income, all else being equal, solve the consumer's:

• A) utility-maximization problem with prices of the goods as variables while keeping income constant.
• B) utility-maximization problem with income as a variable while keeping the prices of the goods constant.
• C) expenditure-minimization problem with prices of the goods as variables while keeping income constant.
• D) expenditure-minimization problem with income as a variable while keeping the prices of the goods constant.