If income changes,one would expect

Question

Quizplus · Accepted Answer

If income changes, it is likely that the consumer's purchasing power also changes, leading to a change in their willingness and ability to buy certain products. This change in consumer behavior results in a shift in the demand curve for the product but does not affect the supply, making option A the correct choice. The shift in the demand curve may lead to a new equilibrium point and a change in the price of the product. Therefore, moving from one point to another along the demand curve may also happen, but it is not the best choice since it does not capture the full extent of the effect of income changes.

If Income Changes,one Would Expect