An increase in consumer incomes will lead to
A)a rightward shift of the demand curve for plasma TVs.
B)a movement upward along the demand curve for plasma TVs.
C)a rightward shift of the supply curve for plasma TVs.
D)no change of the demand curve for plasma TVs.

Question

Quizplus · Accepted Answer

An increase in consumer incomes is likely to increase the demand for luxury products such as plasma TVs. This would result in a rightward shift of the demand curve for plasma TVs, indicating that consumers are willing to purchase more at every price level.

An Increase in Consumer Incomes Will Lead to