Question

HELP!!! Economists note that personal income rose by 5 percent last year. What impact will the change in personal income have on demand?
A It will cause the demand curve to shift up
B It will cause the demand curve to shift left
C It will cause the demand curve to shift down
D It will cause the demand curve to shift right

Answer 1

Answer:

D It will cause the demand curve to shift right

Explanation:

Given

Increase in personal income

Required

The changes on the demand curve

On the demand curve, quantity is represented by the x-axis, while the y-axis represents price.

When personal income increases, the quantity of items purchased will increase.

This means that there will be a shift to the left on the demand curve.

Hence, (d) is correct