Unformatted text preview: curve? Why or why not? Yes, the Engel and demand curves can both be downward sloping. This occurs when the good is inferior but not Giffen. b. (3) Can a good have both an upward-sloping Engel curve and an upward-sloping demand curve? Why or why not? No, the Engel and demand curves cannot both be upward sloping. If the Engel curve is upward sloping, then the good must be normal. However, the law of demand always holds for normal goods, because the income effect reinforces the substitution effect in this case. Thus an upward-sloping Engel curve guarantees that the demand curve is downward sloping....
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- Spring '12
- Supply And Demand, Engel, Engel Curve, downward-sloping Engel curve