Question

explain how do the following influence demand for a good -first rise in income of the consumer second fall in price of the related goods?​

Answer 1

Explanation:

Income:

When the income of the people increases the purchasing power of them will also increases and leads to the increase in the demand for a good.... And when the income decreases , purchasing power will decrease and leads to decrease in the demand for that good...

Related goods:

1. Substitutional goods
2. Complementary goods

When the price of the substitutional good increases its demand decreases and demand for the First good increases

For example : When the price of tea increases its demand decreases and demand for coffee increases.

When the price of complimentary goods increases the demand for original good decreases...

Ex: If price of petrol/diesel increases , the demand for bikes/cars decreases.