Give a reason for each of the following:
The demand for a good increases when the income of the consumer increases.

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Solution

The demand for a good increases when the income of the consumer increases because when the real income of he consumer rises, it rises the purchasing power of the consumer as well and hence with the given income he can purchase more and thus the demand for a good increases.

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Give a reason for each of the following:The demand for a good increases when the income of the consumer increases.

The demand for a good increases when the income of the consumer increases because when the real income of he consumer rises, it rises the purchasing power of the consumer as well and hence with the given income he can purchase more and thus the demand for a good increases.

Give a reason for each of the following:
The demand for a good increases when the income of the consumer increases.