Unless a good is a Giffen good, the demand curve shifts to the right as income rises.

Question

Quizplus · Accepted Answer

This statement is false. For most goods, as income rises, the demand curve shifts to the right, indicating that people are willing and able to purchase more of the good at each price point. However, Giffen goods are an exception to this rule. With Giffen goods, as income rises, people actually purchase less of the good, resulting in a leftward shift of the demand curve.

Unless a Good Is a Giffen Good, the Demand Curve