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Question
The functional relationship between the demand for a commodity and the level of income is known as ______.
Options
price demand
derived demand
joint demand
income demand
MCQ
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Solution
The functional relationship between the demand for a commodity and the level of income is known as income demand.
Explanation:
Income demand refers to the functional relationship between the quantity demanded of a commodity and the income level of the consumer, keeping other factors constant. It shows how demand changes as income changes.
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