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- Subject
- Marketeconomics-mcqs › market
- Published
- 31 May 2019
- Last updated
- 28 May 2026
What is the effect of a rise in income on the demand curve?
Multiple choice question for Market. Select an option, then review the explanation below.
Explanation
An increase in income typically changes consumers' purchasing power, causing the entire demand curve to shift rather than just moving along it. Therefore, it results in a shift of the demand curve, not the supply curve or a movement along the existing demand curve.
More Market MCQs
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- 2.Which of the following is a classic example of a public good?
- 3.Which of the following factors can lead to market failure?
- 4.When a neighbor burns yard debris and smoke enters your home, what type of externality does this represent?
- 5.Why is a competitive equilibrium considered Pareto efficient?