What is the effect of unequal distribution of income on market demand of a commodity? Explain using a diagram. What is the implication of unequal distribution of income for the society?

What is the effect of unequal distribution of income on market demand

1.	What is the effect of unequal distribution of income on market demand of a commodity? Explain using a diagram. What is the implication of unequal distribution of income for the society?
Answer» Solution :If there is unequal distribution of income, all sections of the society will not be able to DEMAND goods and SERVICES. Hence market demand of the commodity would fall and the demand CURVE will shift LEFTWARDS from DD to `D_(2)D_(2)`. Unequal distribution of income implies inequality which is not socially DESIRABLE. It is against social justive and reduces economic and social welfare