In response to the reduction in price of the product, consumers will increase their quantity demanded.
Tax cuts allow consumers to increase their spending, which boosts aggregate demand.
As they did throughout the recession, consumers increased their spending in the first quarter.
However, if consumers have increased their savings but companies are not investing the money, a surplus develops.
When consumers increase the quantity demanded at a given price, it is referred to as an increase in demand.
The consequences for farmers' incomes are dramatic and the low prices certainly did not encourage consumers to increase consumption.
The consumer has increased borrowing as an end run around the absence of income growth.
As personal income and wealth rise, consumers increase their demand for most goods.
In the second quarter of this year, consumers increased their spending at an annualized rate of 2.1 percent.
Some consumers may be increasing their spending precisely because the stock market has performed so poorly.
