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Ernst Engel argued that households possessed a hierarchy of wants that determined the shape of Engel curves. As household income rises some motivations become more prominent in household expenditure as the more basic wants that dominate consumption patterns at low-income levels, such as hunger, eventually become satiated at higher income levels ...
Recent immigrants are also less likely to make use of subsidized housing than native Canadians of the same income level. In 2004 22.5% of low-income native Canadians lived in subsidized housing, but only 20.4% of low income recent immigrants did so, though this number was considerably higher among more established immigrants. [133]
The decline in elasticities as income increases is a form of Kuznet's curve. As economies industrialize and get wealthier, consumer demand changes. At low levels of income, demand for energy or other goods increases very rapidly. However, as income rises further, consumption requirements (e.g. for food or energy) are increasingly satisfied.
A cost of poverty, also known as a ghetto tax, [1] a poverty premium, [2] a cost of being poor, or the poor pay more, [3] is the phenomenon of people with lower incomes, particularly those living in low-income areas, incurring higher expenses, paying more not only in terms of money, but also in time, health, and opportunity costs.
A norm with low intensity would not vary far from the x-axis; the amount of approval or disapproval for given behaviors would be closer to zero. A high-intensity norm, however, would have more extreme approval ratings. In Figure 1, the intensity of the norm appears high, as few behaviors invoke a rating of indifference. Crystallization.
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