CA Foundation P4 · Chapter 2 · Question 3 of 15
For a normal good, an increase in consumers' income will cause:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A rightward shift of the demand curve
Explanation
A change in any determinant other than the good's own price shifts the demand curve. For a normal good, higher income raises demand at every price, shifting the curve to the right. Movements along the curve are caused only by changes in the good's own price.
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