119k views
7 votes
Why would consumer income change demand?

User Gelldur
by
4.6k points

2 Answers

9 votes


\mathfrak{\huge{\orange{\underline{\underline{AnSwEr:-}}}}}

Actually Welcome to the Concept of the Income and demands.

The income effect is a change in quantity demanded because of a change in price that makes consumers feel richer or poorer. A shift in relative prices may cause a substitution effect, in which consumers substitute an alternative less expensive product for one that has become more expensive.

User Piotr Chowaniec
by
4.0k points
6 votes

Answer:

a consumers income would change the demand due to the lack of income received by the consumer which would decrease the demand

*note I am not a expert

User Cruel
by
5.0k points