Income Is a Common Demographic Variable for Segmenting the Consumer

Multiple Choice

Income is a common demographic variable for segmenting the consumer market,and expenditure patterns vary with income.Engel's laws are three general statements based on Ernst Engel's statistical study of the impact of changes in household income on consumer spending behavior.These statements were valid over 100 years ago and with a few exceptions,still appear to be valid today.Choose the statement below that best summarizes Engel's laws.​

A) ​As income increases: a smaller percentage is spent on food; the percentage spent on housing and clothing increases; the percentage spent on other items like recreation remains constant.
B) ​As income increases: a larger percentage is spent on food; the percentage spent on housing and clothing remains constant; the percentage spent on other items like recreation increases.
C) As income increases: the percentage spent on food remains constant; the percentage spent on housing and clothing decreases; the percentage spent on other items like recreation increases.​
D) ​As income increases: a larger percentage is spent on food; the percentage spent on housing and clothing increases; the percentage spent on other items like recreation remains constant.
E) ​As income increases: a smaller percentage is spent on food; the percentage spent on housing and clothing remains constant; the percentage spent on other items like recreation increases.