What is the Difference between Price and Income? In Tabular Form
Answers
Answer:
price is also a wage,but income get in bank
Answer:
The income effect is a concept that analyzes the change in consumers’ demand for goods and services based on their income. It can be looked at broadly across the economy or directly against demand.
income elasticity measures the responsiveness of income to changes in supply while price elasticity of demand measures the responsiveness of demand to a change in price. ... income elasticity refers to a horizontal shift of the demand curve while price elasticity of demand refers to a movement along the demand curve.
The price effect indicates the way the consumer's purchases of good X change, when its price changes, A given his income, tastes and preferences and the price of good Y. This is shown in Figure 12.18. Suppose the price of X falls.