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.