Answer to Question #171189 in Accounting for Ammad Ul hassan

Question

Income of Someone increase by 25%, how this increase in income will affect purchases of new cell phone and second hand bicycle?

Answer 1

The ability bility to purchase suggests that income is important.For the person to purchase a cell phone the price of the cell phone may affect the person's demand for the second hand bicycle. Meaning when income increases, the demand curve shifts to the left