If the Engel curve for a good is upward sloping, the demand curve for

If the Engel curve for a good is upward sloping, the demand curve for that good must be downward sloping.

Indicate whether the statement is true or false

ANSWER

True . If the Engel curve is upward sloping, the good is normal. As a result, the income effect will reinforce the substitution effect and guarantee a downward-sloping demand curve.