How does the equilibrium price of a Normal commodity change when income of its buyer falls.Explain the chain of effects?
The demand of a commodity is a function of the income of consumer. As the income of the consumer decreases, market demand falls and demand curve shifts to the left. This topic is extensively covered in our study material. click the below mentioned link and then go to chapter-5 ( Market Equilibrium) Lesson-2 ( Market Equilibrium under Fixed Number of Firms) under the topic (Changes in Market Demand Only).