Question

How does income of the consumer affect supply?​

Answer 1

Answer:

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Explanation:

In the real world, demand and supply depend on more factors than just price. For example, a consumer's demand depends on income, and a producer's supply depends on the cost of producing the product. ... The amount consumers buy falls for two reasons: first because of the higher price and second because of the lower income.Income effect of an increase in the real wage, w. As w increases, working the same number of hours still gives an increase in income so that a worker may decrease the number of hours worked and maintain the previous level of income so labor supply, NS, decreases.

Answer 2

In the real world, demand and supply depend on more factors than just price. For example, a consumer's demand depends on income, and a producer's supply depends on the cost of producing the product.The amount consumers buy falls for two reasons: first because of the higher price and second because of the lower income.


Explanation: hope it helps