ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to the right
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to the left
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no shift at all
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None of the above
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Detailed explanation-1: -In other words, when income increases, the demand curve for an inferior good shifts to the left.
Detailed explanation-2: -Demand Curve Shifts Right The curve shifts to the right if the determinant causes demand to increase. This means more of the good or service are demanded even though there’s no change in price. When the economy is booming, buyers’ incomes will rise. They’ll buy more of everything, even though the price hasn’t changed.
Detailed explanation-3: -Shifts in the Curve If the good is a normal good, higher income levels lead to an outward shift of the demand curve while lower income levels lead to an inward shift. When income is increased, the demand for normal goods or services will increase.
Detailed explanation-4: -The demand curve will move downward from the left to the right, which expresses the law of demand-as the price of a given commodity increases, the quantity demanded decreases, all else being equal. Note that this formulation implies that price is the independent variable, and quantity the dependent variable.
Detailed explanation-5: -To sum up, if the income level of a population increases, the demand curve will shift to the right, since there is more quantity of demand at every price point. The opposite will happen if the income level drops. Now there will be less money to spend, and the demand curve will shift to the left.