Our general observation of how consumers react to an increase in their incomes suggests that most income consumption curves are of the shape presented ill , i.e., slopping upwards to the right. This means that, as a rule, a rise in consumer’s income will make him buy more of each of any two goods he is consuming. This is the usual shape of the income consumption curve.
sulfuric Goods. Those goods of which the quantity that the consumer would buy less, as his incomerises, are called inferior goods. Thus, in diagram 7.5 (a), good X and in diagram 7.5 (0), good Y ,U’C inferior goods. Inferior goods may, therefore, be defined as goods for which income effect is negative.
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