Induced consumption is consumption expenditure by households on goods and services that varies with income. Such consumption is considered induced by income when expenditure on these consumables varies as income changes. Induced consumption contrasts with autonomous consumption, which is expenditures that do not vary with income.
For example, expenditure on a consumable that is considered a normal good would be considered to be induced.
Read more about Induced Consumption: Some Ways in Which Induced Consumption Occurs
Famous quotes containing the words induced and/or consumption:
“The classicist, and the naturalist who has much in common with him, refuse to see in the highest works of art anything but the exercise of judgement, sensibility, and skill. The romanticist cannot be satisfied with such a normal standard; for him art is essentially irrational—an experience beyond normality, sometimes destructive of normality, and at the very least evocative of that state of wonder which is the state of mind induced by the immediately inexplicable.”
—Sir Herbert Read (1893–1968)
“What happens is that, as with drugs, he needs a stronger shot each time, and women are just women. The consumption of one woman is the consumption of all. You can’t double the dose.”
—Ian Fleming (1908–1964)