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A rise in income will ceteris paribus bring abo... - JAMB Economics 2012 Question

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
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Correct Option: B

A rise in income will lead to a change in the quantity demanded at each price level. This causes the entire demand curve to shift. Specifically, for a normal good, an increase in income leads to an increase in demand, shifting the demand curve to the right.

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