Whats the connection between Income and Consumption?

[Sotherefore]

all these things are just so complicated to me that I don't even understand any of them, the reason might have been because I do not have any interest in economy, this is a question for The economist only which I am not one of them.

 

[FreshKaz11]

The connection between Income and Consumption is frequently called a consumption schedule. It is utilized to depict monetary patterns in the household sector. When there is more cash or expectation of income, more merchandise are bought by customers. Which means cash is spent on uses, now and again, regardless of whether there isn't sufficient income to cover them. This is a typical financial principle used to portray spending patterns for public and world economies. A business ought to consider the connection among consumption and investment funds to separate information on buyer's patterns inside its own industry.

The connection of the two of them is almost equal I guess, because once the income comes in there is a chance for so many bills to pay at the end which will eventually consume the income as well.

 

[tyrim88]

They can't be any consumption without an income,so i think they are interchangeable,but their is still a difference. Income has to do with benefits gotten from any job you do,on the other hand consumption is the use of the income.

For there to be a consumption something has to be on ground for the expenses to take place.Consumption is a function of your income that is accuried to you either from wages or salary or from business profit.Something need to come in to be used for expenses.

 

[Richard92]

Well said, consumption comes after income because without income there would be no consumption whatsoever and like you rightly said one can't and shouldn't consume more than his income as that would be detrimental

When there is too much consumption they will not be income and income is login from a business transaction, most people actually consume they are income.

 

[Kunkun]

When there is too much consumption they will not be income and income is login from a business transaction, most people actually consume they are income.

Indeed when there is too much consumption then there definitely would be little or no income, it's true many businesses have fold up before their consumption Trump's their income

 

[Justin]

If you spend more money than you are actually earning, you will run into debts. Therefore, when you are not earning enough yet expenses are high you need to cut your expenses.

 

[eLdavis]

Income and consumption goes together you cannot have one without the other. To be able to consume, there must be income. When income comes in there are always liabilities to deal with.
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Income and consumption goes together you cannot have one without the other. To be able to consume, there must be income. When income comes in there are always liabilities to deal with.

 

[Mostee501]

For there to be a consumption something has to be on ground for the expenses to take place.Consumption is a function of your income that is accuried to you either from wages or salary or from business profit.Something need to come in to be used for expenses.

That's the main reason why both consumption and income work hand in hand, one can operate without the other but one cannot.

 

[Damismiling]

The connection is simply that your income determines your consumption, as your income increases you are likely to consume More since you are able to afford

 

[Ralphjoe]

Those two are mutually exclusive, like you can have income without consumption around the corner. But you need to work on your consumption rate if you so want to have something left for savings. The reason why one needs to budget one's income before it comes so as to allocate it properly.

I completely agree that income and consumption are mutually exclusive because they cannot do without each other. The amount that you are going to receive as payment is called income and when you receive this money there is no way that you would not spend out of it and that is called consumption.

 

[Chibson]

If someone does not have proper financial Management plans he will definitely consume more than he earns and it will leave him broke and will never be rich.

 

[Shigobad20201]

The connecting between the two (income and consumption) is that they are bith coming to you, income is what we makes either daily, weekly and monthly while consumption is what we eat, spent out of what we have.

 

[akinlolu99]

In as much as you should not spend crazy same way as no matter how mucj yoy try there are still some expenses you will make E.g. I spent one money this night I should not have but as u know family is important nd i could not. There is a slim line btw consumption and income yet.

 

[Ralphjoe]

In as much as you should not spend crazy same way as no matter how mucj yoy try there are still some expenses you will make E.g. I spent one money this night I should not have but as u know family is important nd i could not. There is a slim line btw consumption and income yet.

The only connection that I see between income and consumption a device that the more you consume out of your income the less you have for other aspect of your income because the consumption of your income really dwindles this your income to an unimaginable proportion.

 

[Kelly5]

You guys have spoken like actual economists. Those are very valuable knowledge o have gained reading as well as reasoning all the contributions you've all made and are making on the subject

 

[Billy]

The connection between Income and Consumption is frequently called a consumption schedule. It is utilized to depict monetary patterns in the household sector. When there is more cash or expectation of income, more merchandise are bought by customers. Which means cash is spent on uses, now and again, regardless of whether there isn't sufficient income to cover them. This is a typical financial principle used to portray spending patterns for public and world economies. A business ought to consider the connection among consumption and investment funds to separate information on buyer's patterns inside its own industry.

Wow! This is a basic idea but i had not thought about it that way. It totally makes sense. And it is a good thing to consider when planning your expenditures. I have also realized i spend much when i anticipate i will get some more money in the near future. Which is not usually a good thing. Because it sometimes fails to happen and leaves me in stress.

 

[Man]

The connection between income and consumption is that they are directly proportional to each other in normal market sentiments. If income increases the consumption will also increase and if consumption increases the income will also increase, due to economic factors. However if market sentiments are fearful then there is a inverse of the relation.

 

[Ralphjoe]

Those two are mutually exclusive, like you can have income without consumption around the corner. But you need to work on your consumption rate if you so want to have something left for savings. The reason why one needs to budget one's income before it comes so as to allocate it properly.

It is true that the income and consumption are very mutually exclusive that is being dependent on each other as the amount of income that you get will determine the amount that you will consume so they all depends on each other.

 

[Victorial]

Herein it merits the proverb that says cut your coat according to your size. It is not that hard to calculate your consumption needs when you know how much income you earn.

 

[Ceeny007]

In the early stages of human life,man consumes without earning income but as we grow older we have to earn income to consume, consumption is what we use income earned to maximize utility