An increase in income raises consumption at each price, so the demand curve shifts to the left (b) An increase in income raises consumption at each price, so the demand curve shifts to the right (c) A decrease in income lowers consumption at each price, so the demand curve shifts to the right
An increase in income raises consumption at each price, so the demand curve shifts to the left (b) An increase in income raises consumption at each price, so the demand curve shifts to the right (c) A decrease in income lowers consumption at each price, so the demand curve shifts to the right
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 17P: If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded...
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Question
6. When a good is normal:
(a) An increase in income raises consumption at each price, so the demand curve shifts to
the left
(b) An increase in income raises consumption at each price, so the demand curve shifts to
the right
(c) A decrease in income lowers consumption at each price, so the demand curve shifts to
the right
(d) An increase in income lowers consumption at each price, so the demand curve shifts
to the left.
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