How does income cause changes in demand?
1 Answer
Aug 10, 2015
A rise in income increases demand and a fall in income decreases demand.enter link description here
Explanation:
Price remaining constant, a rise in income will shift the demand curve to the right. The consumer will buy more at the exiting price.
Price remaining constant, a fall in income will shift the demand curve to the left. The consumer will buy less at the existing price.
