explain the affects of change in income on demand for a good
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heya!
as we know that law of demand states that higher the price lower the demand n lower the price higher the demand but some other factor affects the quantity demanded like income, taste, preference, habits etc.
change in income affects quantity demanded... higher the income higher the demand n lower the income, lower the demand.. that's why we can say that there is positive relationship between income n quantity demanded.
hope this help!!
as we know that law of demand states that higher the price lower the demand n lower the price higher the demand but some other factor affects the quantity demanded like income, taste, preference, habits etc.
change in income affects quantity demanded... higher the income higher the demand n lower the income, lower the demand.. that's why we can say that there is positive relationship between income n quantity demanded.
hope this help!!
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