Solved

An Increase in Consumer Income Will

Question 187

Multiple Choice

An increase in consumer income will


A) shift the budget constraint and increase its slope.
B) reduce consumption of all normal goods.
C) pivot the budget constraint on the axis with the good that has the higher price.
D) shift out the budget constraint and increase the consumption of both goods, if they are normal goods.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q182: If two units of a good provide

Q183: The state of consumer optimum is reached

Q184: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the

Q185: If a consumer is at an optimum,

Q186: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the

Q188: A consumer has been buying 3 magazines

Q189: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the

Q190: An indifference curve<br>A) must be convex to

Q191: The marginal rate of substitution is measured

Q192: When an individual's purchasing power changes due