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he main factors that affect the consumers expenditure are level of income, price of the good or service, the price of substitute and complement goods, consumer tastes and preferences and advertising. and services
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There are several factors that affect the individual's demand for goods and services. The main factors that affect the consumer's expenditure are level of income, price of the good or service, the price of substitute and complement goods, consumer tastes and preferences and advertising. An individual's level of income is one of the main factors that affects the individual's demand for goods and services. As an individual earns a higher income, they tend to buy more items and, items of a higher quality as they have more money to spend. If the price of a can of Coke goes up from $0.50 to $1 and income stays the same, the income that is available to spend on coke, which is $2, is now enough for only two rather than four cans of Coke. Thus, the consumer the demand of Coke. Thus if there is an increase in price and no change in the amount of income available to spend on the good, there will be an elastic demand will be sensitive to a change in price. Another factor that affects an individuals demand is the price of the good or service itself. For example, if the price of basic food
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