A higher consumer income increases the demand for a particular good. The effect of this income on market demand usually is illustrated by:
A)a rightward shift in the demand curve
B)a leftward shift in the demand curve
C)a rightward movement along the demand curve
D)a leftward movement along the demand curve.

Question

Quizplus · Accepted Answer

A higher consumer income increases the ability and willingness of consumers to purchase a good, leading to a higher demand for the good at every price level. This is reflected by a rightward shift in the demand curve. A higher consumer income usually means they have more disposable income to spend on goods, which increases the demand for those goods. This results in a rightward shift in the demand curve, indicating a higher quantity demanded at every price point.

A Higher Consumer Income Increases the Demand for a Particular