What happens to the demand of a good when consumer's income changes? E

1.	What happens to the demand of a good when consumer's income changes? Explain.
Answer» Solution :There is a positive relationship between INCOME of a CONSUMER and demand for a commodity if the GOOD is a normal good whereas there is a NEGATIVE relationship between income of the consumer and demand of a commodity if the good is an inferior good. So, with an increase in income of the consumer the demand of a normal good rises and vice-versa and with increase in income of the consumer the demand for an inferior good falls and vice-versa.

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