QuestionJuly 20, 2025

An increase in consumer income will shift both the supply and demand curves. True False

An increase in consumer income will shift both the supply and demand curves. True False
An increase in consumer income will shift both the supply and demand curves.
True
False

Solution
4.7(177 votes)

Answer

False Explanation 1. Analyze the effect on demand An increase in consumer income typically increases demand for normal goods, shifting the demand curve to the right. 2. Analyze the effect on supply Consumer income changes do not directly affect the supply curve. Supply is more influenced by production costs, technology, etc.

Explanation

1. Analyze the effect on demand<br /> An increase in consumer income typically increases demand for normal goods, shifting the demand curve to the right.<br />2. Analyze the effect on supply<br /> Consumer income changes do not directly affect the supply curve. Supply is more influenced by production costs, technology, etc.
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