Economy, asked by vs1520005, 7 days ago

how do changes in income affect demand for a commodity ? explain with the help of the diagram.​

Answers

Answered by Meenakshi309
0

Impact of change in income on the demand of a commodity depends on the nature of the commodity .

a ) Normal Goods - Goods for which demand rises due to rise in income , ( example - Restaurant meals , Air travel etc )

b ) Inferior Goods - Goods for which demand falls due to rise in income ( example - Cheap bus tickets , low grade grains etc .

hence Verified

thankyou .

Answered by g6charterraine
0

how do changes in income affect demand for a commodity ? explain with the help of the diagram.

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