consumption behavior

What Are The Factors Of Consumption?

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What Are The Factors Of Consumption? Consumption function, in economics, the relationship between consumer spending and the various factors determining it. At the household or family level, these factors may include income, wealth, expectations about the level and riskiness of future income or wealth, interest rates, age, education, and family size. What are the factors

How Does Change In Income Affect Budget Line?

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How Does Change In Income Affect Budget Line? Changes in income affect a consumer ́s choice. The new equilibrium for a greater income is higher on the budget line because the increased income allows the consumer to purchase more of both products. Higher income increases affordability of the goods, while lower income decreases it. What