Relation between the Effects of Changes in Income and Prices Rise
Economics is that branch of study which necessarily deals with the production, distribution, and consumption of goods and services. It also includes the factors which bring changes in these processes. Now, coming to the relationship between income and price rise, you have to know that the income of individuals and price of products are closely related. Any firm which aspires to be successful targets the common man as their potential customer.
You have to understand that a firm targets the common man because of various reasons. The common man is obviously more in majority as compared to the Aristocracy or the ones who live below the poverty line. When the pricing of any product is decided, their chief target is the income of the consumer so as to contemplate whether or not they can afford it. Once the income is looked into, a proper pricing is made which further helps the full on sale of their potential product.
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Problems students face while studying income and pricing correlation
Why must you know about the relationship between income and pricing?
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