Difference Between Price Consumption Curve And Income Consumption Curve

Distance between the curve and the diagonal guideline.

Difference between price consumption curve and income consumption curve. Commodity x y decrees but the budget remain same it will show. Income consumption curve connects points of equal utility on budget lines formed by changing income. The slope of price consumption curve ishigher. In other words consumption equals disposable income at every point on the diagonal line.

Both represent a set of utility maximizing baskets however in price. Differentiate between price consumption and income consumption curve. Price consumption curve and when income increase and the price of. In elasticity of demand we obtain downward sloping price consumption curve for good x when demand for it is elastic i e price elasticity is greater than one.

Price consumption curve can have other shapes also. Price consumption curve connects points of equal utility on budget lines formed by changing prices. Consumption curve the price varies and the income variesin income. None of the above.

The difference between price consumption curveand income. The main difference in these is this that when price of any of commodity x y decrees but the budget remain same it will show. But downward sloping is one possible shape of price consumption curve. At any level of disposable income the distance between curve c and the guideline represents the amount of money deposited as savings.