When Income Increases, the Demand Curve for X Shifts Rightward

question 10

Multiple Choice

When income increases, the demand curve for X shifts rightward and the demand curve for Y shifts leftward. These shifts mean that

• A) X and Y are both normal goods.
• B) X is a normal good and Y is an inferior good.
• C) X is an inferior good and Y is a normal good.
• D) X and Y are complements.

---

Definitions:

Easement

A nonpossessory right, established by express or implied agreement, to make limited use of another’s property without removing anything from the property.

Product of the Land

Refers to natural resources or crops that are produced, grown, or extracted directly from the land.

Joint Tenant

An individual co-owning property with one or more persons, where each owns an equal share, and upon death, the interest passes to the surviving co-owners.

Chosen Heirs

Individuals or entities designated to receive inheritance under a will or through state intestacy laws in the absence of a will.