Question

Explain the effect of change in income of consumer on consumer for demand.

Answer 1

Based on the effects of change in income on demand for a good, there are two types of goods: (i) Normal goods: There is a direct relationship between income of the consumer anddemand for normal goods, i.e., ifincome increases demand increases or income decreases demanddecreases as shown in the diagram

Answer 2

Based on the effects of change in income on demand for a good, there are two types of goods: (i) Normal goods: There is a direct relationship between income of the consumer anddemand for normal goods, i.e., ifincome increases demand increases or income decreases demanddecreases as shown in the diagram