Change in Income Demand
This theory defines by marshal. Demand is the quantity of any product which
a consumer has ability to buy on different price. For demand, it is must
that consumer have an interest in
that product & also have buying ability or money.
When, we accumulate all the demand
of any products in an economy that is total
demand of product in economy. When we discuss about demand theory, we
assume that all thing remain same in the economy.
Income demand –
In income demand, we analysis the behaviour of income, when other thing
remain same in economy, income demand represent the different -2 co-relation of goods and services with
income. When there is an increase in the income, a consumer increases their
buying behaviour so that they are able to buy more goods & services. So we
can say that there is a direct
co-relationship between income and demand.
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| Income Demand |
When there is a increase in income
from I to NI so then quantity will be shift from Q to Q1 and co-relation shift
from A to B.
