When Tom's income increases, his demand curve for Mountain Dew shifts rightward because the higher income increases his marginal utility of Mountain Dew.

Name: When Tom's income increases, his demand curve for Mountain Dew shifts rightward because the higher income increases his marginal utility of Mountain Dew.
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Question

Quizplus · Accepted Answer

An increase in income typically shifts the demand curve to the right due to increased purchasing power, not necessarily because of increased marginal utility.

When Tom's Income Increases, His Demand Curve for Mountain Dew