Question

What will happen to the real income of the buyer if price of a commodity falls

Answer 1

Question →

What happens to the real income of the buyer if price of a commodity falls ?

Answer→

With the fall in the own price of a commodity the purchasing power of the income will increase. Hence the real income of the consumer will also increase . Resulting that the consumer is now able to buy more commodity in that existing amount of income now.

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Here is an another similar concept that is Worth of a Rupee.

a consumer defines it in term of utility that he derived from a standard basket of good that we can buy with rupees.