Question

Describe in detail the concept of income effect and income consumption

Answer 1

Answer:

$\bold{AT FIRST WHAT IS INCOME.?\\ \\ ITS A REVENUE FROM OUR BUISNESS OR FROM OUR JOB.\\ \\WHEN WE SELL GOOD PRODUCTS IN A MONTH AND HENCE WE GET SOME MONEY THAT IS CALLED INCOME.\\ \\WE CAN SAY IT AS AN EFFECT WHEN THE PRICES ARE BEING CHANGES.\;WHEN THE DWMAND OF ANY PRODDUCT DECREASES.\\HENCE IT RISES IN THE MARKET.\;WHEN THE DEMAND GET INCREASES IT.\;AS A RESULT THE PRODUCT WILL EARN MORE.\\ \\NOW WHAT IS INCOME CONSUMPTION.\\ \\IT CAN BE CALLED AS THE CHANGING FROM THE REAL INCOME.\;WHEN WE LOOSE IN SOME OF THE EARNING PRODUCTS THIS RESULTS IN THE FALL DOWN OF OUR INCOME.\;THAT IS CALLED THE INCOME CONSUMPTION}$