Market effects of changes in income

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Market Effects of Changes in Income.

Part 1 Increase in income. Consumers use their income to buy? products, and the more money they? have, the more money they spend. For a normal good?, there is a positive relationship between consumer income and the quantity consumed. When income? increases, a consumer buys a larger quantity of a normal good.

Part 2 Decrease in income. An inferior good is the opposite of a normal good. Consumers buy larger quantities of inferior goods when their income decreases.

Part 3 Now consider the market forrestaurant meals. If consumer income ?, andrestaurant meals are ?goods, what happens to the demand forrestaurant ?meals?

Part 4 In this? case, the demand forrestaurant meals decreases ?, and the demand curve shifts to the

Reference no: EM133637325

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