Well, in our textbook, it says when the price of something falls, like rice from ₹40 to ₹30, people feel relatively richer—that’s the income effect—and also switch from other goods because it’s a better deal—that’s the substitution effect. So, demand goes up, and the curve slopes down. But bhai, in our household, when the price of my father’s tea falls, he doesn't buy more; he just saves that ₹10 for my mother’s medicines. So the curve might slope down, but sometimes the slope feels very different in our budget.
#money#career
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