-Suppose the quantity of sodas and the quantity of popcorn are on an indifference curve/budget line diagram. An increase in income shifts the budget line ________ and, if popcorn is a normal good, shifts the demand curve for popcorn ________.
A) rightward; rightward
B) rightward; leftward
C) leftward; rightward
D) leftward; leftward

Question

-Suppose the quantity of sodas and the quantity of popcorn are on an indifference curve/budget line diagram. An increase in income shifts the budget line ________ and, if popcorn is a normal good, shifts the demand curve for popcorn ________.
A) rightward; rightward 
B) rightward; leftward 
C) leftward; rightward 
D) leftward; leftward

Quizplus · Accepted Answer

An increase in income shifts the budget line rightward because consumers can afford more of both goods. If popcorn is a normal good, the demand curve for popcorn shifts rightward as well, since higher income increases the quantity demanded of normal goods.

-Suppose the Quantity of Sodas and the Quantity of Popcorn