Explain how do  the following  influence demand  for a good.
1) Rise in income of the consumer
2) Fall in the price of related goods

1. when there is rise in income of a consumer there will be rise in demand of goods
as there r mainly two types of goods normal and inferior goods.
so with rise in income there will b an increase in demand for normal goods followed by decrease in demand of inferior goods.

2. when the price falls of related goods then the demand will decrease in demand of one substitute good and increase in other and increase in demand for complementary goods
in case of substitute goods say for ex. mango and apple . if price of mango falls comparing to apple then demand for apple will decrease and demand for mango will increase.

in case of complementary for ex. pen and ink
if price of ink falls then there will rise in demand for both ink and pen as they are complementary to each other
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Search Question here student-name Sanjana Yesudas asked in Economics Explain how do the following influence demand for a good. 1) Rise in income of the consumer 2) Fall in the price of related goods SHARE 2 Follow 0 ANSWER NOW student-name Shobha answered this 1 helpful votes in Economics, Class XII-Commerce 1. when there is rise in income of a consumer there will be rise in demand of goods as there r mainly two types of goods normal and inferior goods. so with rise in income there will b an increase in demand for normal goods followed by decrease in demand of inferior goods. 2. when the price falls of related goods then the demand will decrease in demand of one substitute good and increase in other and increase in demand for complementary goods in case of substitute goods say for ex. mango and apple . if price of mango falls comparing to apple then demand for apple will decrease and demand for mango will increase. in case of complementary for ex. pen and ink if price of ink falls then there will rise in demand for both ink and pen as they are complementary to each other
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