A rise in income will, ceteris paribus, bring about
ECONOMICS
JAMB 2012
A rise in income will, ceteris paribus, bring about
- A. a movement along the demand curve
- B. a leftward shift of the demand curve
- C. a rightward shift of the demand curve
- D. no effect on the demand curve
Correct Answer: C. a rightward shift of the demand curve
Explanation
All things being equal, a rise in income will lead to a rightward shift in demand. A rightward shift in the demand curve could also be as a result of higher price of a substitute good, lower price of a complement good, etc.
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