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
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“Few can be induced to labor exclusively for posterity; and none will do it enthusiastically. Posterity has done nothing for us; and theorize on it as we may, practically we shall do very little for it, unless we are made to think we are at the same time doing something for ourselves.”
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