Скачать или смотреть NET JRF Economics | Microeconomics | Lesson 18 | Income Effect | Intro to Income Consumption Curve

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This lesson explains the Income Effect and gives an introduction to Income Consumption Curve. It is important for the microeconomics students. It is relevant for the courses like BBA, Economics hons, for the graduation and post graduation level and for competitive exams like CUET Economics, IAS economics optional, Indian Economic Service and the NET JRF Economics aspirants.

Income Effect means the change in consumer’s purchases of the goods as a result of a change in his money income. As the consumer’s income increases, he switches to a higher Indifference Curve and as a consequence enjoys a higher level of satisfaction.

Income Consumption Curve: It is the location of equilibrium points at various levels of consumer income. It takes out the income effect on the quantity consumed of the goods.

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