Consumer Income in Economics

 Consumer income is the amount households have available to spend after income taxes have been deducted.It is the money that a consumer earns from either work or investment, such as dividends distributed by companies to its shareholders and the gain realized on the sale of an asset, such as a house. When you combine these income sources, it's often referred to as aggregate income.

As income increases the demand
for a normal good will increase.
♦ As income increases the demand
for an inferior good will decrease.

 

Prices of Related Goods
Substitutes & Complements

♦When a fall in the price of one good
reduces the demand for another good,
the two goods are called substitutes.
♦When a fall in the price of one good
increases the demand for another
good, the two goods are called complements.