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