The above curve is called the Engel’s law. Based on the curve which of the following statements can be inferred?

Explanation:

The curve shows us that the proportion of income spent on food decreases as income increases.

It does not mean that people earning higher incomes spend less on food. Thus options (A) and (B) cannot be inferred.

The curve does not tell us anything about saving patterns. Hence, option (D) cannot be inferred.

Option (C) talks about a higher proportion of income available for non-food spending among people with higher incomes, which can be directly inferred from the diagram.

Hence, Option C