Question

when price of a commodity increases, real income of the consumer will a) decrease b) increase c) may increase or decrease d) remain same

Answer 1

Answer:

a) decrease

Explanation:

when price will increase the income of the consumer will decrease and producer will increase.

income of consumer=1/income of producers..

Because they have to afford high prices if commodities and people of low income or wages will be mostly influenced by this change.