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This is the income that the average consumer will be able to purchase. This is not the money that is available for just your product.
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∙ 9y ago
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What does the income effect indicates?
It indicates that a lower price increases the purchasing power of a buyer's money income, enabling the buyer to purchase more of the product than before.
Why an economy's income must equal to it's expenditure?
For an economy as a whole, income must equal expenditure because:u Every transaction has a buyer and a seller.u Every dollar of spending by some buyer is a dollar of income for some seller.
Why an economy's income must equal its expenditures?
Because every dollar of spending by a buyer is a dollar of income for a seller
What is the average age of a first time home buyer?
what was the average age of a first time home buyer i n 1999
What is income effect?
It indicates that a lower price increases the purchasing power of a buyer's money income, enabling the buyer to purchase more of the product than before.
Is it true for an economy as a whole. income equals expenditure because the income of the seller must be equal to the expenditure of the buyer?
Yes
How much is tax worth?
A tax paid for income taxes is a percentage of total income. Tax varies by how much income a person has. Tax is also paid on items sold in many states. The buyer pays a percentage on average of 7% on purchases. Gasoline, cigarettes, and liquor are taxed differently. Groceries are taxed in some states and not in others.
What is the average income for a computer buyer?
The buyer here is to be taken as per the need of him, using the computer. If, all he needs is a basic computer which would assist him in doing the MS-Office tasks, checking emails and listening to songs and watching movies, a basic computer with a min. config. is enough. For this, the avg. income of Rs.10000 per month is sufficient. Most of the retailers are providing the systems with an EMI option too.
What indicates that a lower price increases the purchasing power of a buyers money income enabling the buyer to purchase more of the product than before?
Income effect.
What is the average starting salary for a fashion buyer?
55,000 to 100,000
How much of each dollar spent by a consumer becomes income to someone else?
100%. "Every dollar of spending by a buyer is a dollar of income to a seller.". Income is the same as expenditure. (source: Mankiw economics text)
Why must an economy's income be equal to it's expenditure?
An economy's income must be equal to it's expenditure because every transaction has a buyer and a seller. It is also because every dollar of spending by some buyer is a dollar of income for some seller. Gross domestic product (GDP) measures an economy's total expenditure on newly produced goods and services and the total income earned from the production of these goods and services.
