An increase in income is represented by a shift of the budget line outward to a parallel position.

Name: An increase in income is represented by a shift of the budget line outward to a parallel position.
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When income increases, the consumer can afford to purchase more goods and services, resulting in a shift of the budget line outward to a parallel position. This is known as an income effect.

An Increase in Income Is Represented by a Shift of the Budget