19. Which of the following occurs when a consumer’s income increases? a) The bud

Question

19. Which of the following occurs when a consumer’s income increases?

a) The budget constraint shifts out b) The budget constraint shifts in c) The indifference curve shifts in d) The indifference curve shifts out

20 Which of the following occurs when a consumer’s income increases?

a) The consumer can move to a higher indifference curve b) The consumer must stay on the same indifference curve c) The consumer can move to a lower indifference curve d) It is not possible to say what the consumer will do

Explanation / Answer

When consumer's income increases:

19)

a) The budget constraint shifts out

20)

a) The consumer can move to a higher indifference curve

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