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
jamb 2012economics

The correct answer is C. a rightward shift of the demand curve

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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