If a consumer is initially in equilibrium, an increase in money income will
A)move the consumer to a new equilibrium on a lower indifference curve.
B)move the consumer to a new equilibrium on a higher indifference curve.
C)make the slope of the consumer's indifference curves steeper.
D)have no effect on the equilibrium position.

Question

Quizplus · Accepted Answer

An increase in money income allows a consumer to afford more goods and services, leading to a higher level of satisfaction. This is represented by a move to a higher indifference curve, indicating a higher level of utility.

If a Consumer Is Initially in Equilibrium, an Increase in Money