Explain how rise in income of a consumer affects the demand of a good.

1.	Explain how rise in income of a consumer affects the demand of a good. Give example.
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :An <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> in income of the consumer <a href="https://interviewquestions.tuteehub.com/tag/leads-540453" style="font-weight:bold;" target="_blank" title="Click to know more about LEADS">LEADS</a> to an increase in demand of the commodity in case of a normal good as the consumer now has more money to spend on the good whereas a <a href="https://interviewquestions.tuteehub.com/tag/decrease-946104" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASE">DECREASE</a> in income of the consumer leads to fall in demand of a normal good as the consumer now has <a href="https://interviewquestions.tuteehub.com/tag/less-1071906" style="font-weight:bold;" target="_blank" title="Click to know more about LESS">LESS</a> disposable income to spend on the good.</body></html>

Explain how rise in income of a consumer affects the demand of a good. Give example.