Gce Model Questions Vol1 2018 Economics Question 21

Practice objective / multiple choice question 21 from the 2018 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2018 Economics Objective / Multiple Choice Easy Difficulty
Question 21 GCE_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

If consumer income rises and the good is a \(\text{normal good}\), what happens to the demand curve? State the direction of the shift and the resulting effect on equilibrium price and quantity, assuming the supply curve does not change.

Answer Options

A. Demand shifts left; equilibrium price falls; equilibrium quantity falls
Correct Answer B. Demand shifts right; equilibrium price rises; equilibrium quantity rises
C. Demand shifts right; equilibrium price falls; equilibrium quantity rises
D. Demand shifts left; equilibrium price rises; equilibrium quantity falls
Correct Answer
B
Correct Option:
Demand shifts right; equilibrium price rises; equilibrium quantity rises

About This Question

This is Gce Model Questions Vol1 2018 Economics Question 21. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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