An increase in income causes compensated demand curves to shift inward and regular demand curves to shift outward.

Name: An increase in income causes compensated demand curves to shift inward and regular demand curves to shift outward.
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An increase in income typically causes regular demand curves to shift outward due to increased purchasing power, but compensated demand curves, which adjust for changes in income to isolate the substitution effect, do not shift based on income changes alone.

An Increase in Income Causes Compensated Demand Curves to Shift