WHAT is your ENGEL COEFFICIENT?

Answer 1

The Engel coefficient is a measure of the proportion of a household's income that is spent on food. It is used to assess the economic well-being of households; a higher Engel coefficient indicates that a larger share of income is devoted to food, which is often associated with lower income levels. Conversely, a lower Engel coefficient suggests that households can allocate more of their income to non-food items, indicating greater economic stability and affluence.