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.