Whats the connection between Income and Consumption?

[Ezekiel]

The connection between income and consumption is that the more your income the more your expensive,the more your income the more you are eager to buy or purchase something more expensive,so the higher the income the higher the consumption,the lesser your income the lesser your consumption

 

[Georgeadawara1]

How much money does a person have? He spends according to the calculation. When a slave does not have money, how will he spend it? B The less a person has, the more he will have to spend and the more he will consume them, so the desires are created where there is some chance of them being fulfilled.

 

[Queentener]

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 relationship between income and expenditure is often called a consumption schedule. It is used to describe economic trends in the household sector. When there is more money or anticipation of income, more goods are purchased by consumers.

 

[Filicit]

Income is directly proportional to consumption, in the sense that the money you earn which is income is what you eventually spend on consumption

 

[Alexandoy]

Income is directly proportional to consumption, in the sense that the money you earn which is income is what you eventually spend on consumption

Actually consumption comes first and income comes next. When there is no income the consumption is still there particularly with the food that we cannot do away with. The person will borrow money to be able to satisfy the consumption. When the consumption is greater than the income then that is a financial disaster.

 

[Filicit]

Actually consumption comes first and income comes next. When there is no income the consumption is still there particularly with the food that we cannot do away with. The person will borrow money to be able to satisfy the consumption. When the consumption is greater than the income then that is a financial disaster.

When you borrow money, that money becomes yours and as such becomes yours so it can as well be classified as income but under debt

 

[Yusuf1]

I still don't get it with the way you just explained it here. I think I will have to get someone good or vast in economics to explain further to me so that I can get the concept better

 

[Solutionav]

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.

There is this popular saying that the higher your income, the higher your rate of consumption, so most people tend to increase there taste or standard of living when there income increases

 

[Bousine123]

Thanks for the explanatory post my friend. I think we all need to find the balance between the two, because if we consume more than we earn, It will be pretty difficult us financially.

 

[Kaffyfolla]

The level of your income will determine the level of your spending, but at times if the level of your consumption equate the level of your income, definitely you wouldn't having any saving

 

[Ub40]

I must commend you for taking your time to do research on the above topic and bringing it here for the benefits of the members here. This reminds me of my school days where all these things were thought in Economics. I have really refreshed my memories from the different comments here. It is just my opinion and thanks for sharing.

 

[Setho]

This is a particular metric that business owners are supposed to always have at their beck and call in order to know very much about their customers and how to get them.

 

[Kvngsammy]

Waoh. This is a new phenomenon that I'm just coming to know about. Kudos to the creator of this thread and I'll definitely bookmark this because I'm an intending entrepreneur and I need to understand this principle to get buyers do what they want to do and still purchase from me in the end

 

[Alexandoy]

Our college professor said that when the consumption (not the expense) exceeds the income then it will cause a financial problem. Think that every payday the income is not sufficient to handle the consumption and it would cause a piling up of debts.

 

[Kunkun]

The relationship between consumption and income is actually close because the level of consumption would have an effect on the income being made, consumption has to be lower for good turnovers

 

[Immilash]

The relationship between income and consumption is quite slick. Economics thought teaches that the higher the income that you earn ,the higher your consumption level increases.
[/QUOTE
I concur with you ,the higher the income you get the higher the level of your consumption,the more money you get the more plenty your needs will become,consumption level is always increasing when your have enough

 

[Setho]

Food consumption involves all the amount of money that you have spent before you made any sale. income is the total amount of money that you have made from selling your products.

 

[Ezekiel]

The both has alot of connection,one cannot spend what he doesn't have the relation between both is that we consume base on our income

 

[Stnicholaz]

The connection between income and consumption is simple. The higher the income the higher the rate of consumption. The level of income will determine your scale of preference. If the income is small you all consume want you need but when income is high one can consume both need and want.

 

[Sotherefore]

Wo

The connection between income and consumption is simple. The higher the income the higher the rate of consumption. The level of income will determine your scale of preference. If the income is small you all consume want you need but when income is high one can consume both need and want.

Wows, nice explanation does this relate to the law of supplies and demand that they higher the availability of products the easily it is for people to get it ? This is an indirect law of demand and supply.