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Marketeconomics-mcqs › market
Published
31 May 2019
Last updated
28 May 2026

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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.

Choose the correct answer

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.

Practice related questions from the same subject.

  1. 1.Broadcasting firms use satellite TV subscriptions and signal detection tools primarily to combat which issue?
  2. 2.Which of the following is a classic example of a public good?
  3. 3.Which of the following factors can lead to market failure?
  4. 4.When a neighbor burns yard debris and smoke enters your home, what type of externality does this represent?
  5. 5.Why is a competitive equilibrium considered Pareto efficient?

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