If an Increase in Income Leads to an Increase in the Demand

question 180

Multiple Choice

If an increase in income leads to an increase in the demand curve for sailboats, this will lead to

• A)higher prices of sailboats.
• B)lower prices of sailboats.
• C)a corresponding shift in the supply curve for sailboats.
• D)reduced output of sailboats.
• E)no change in the price of sailboats.

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Definitions:

Trademark

A recognizable sign, design, or expression which distinguishes products or services of a particular trader from those of others.

Invention

The creation of a new device, method, or process, resulting from study and experimentation.

Expense Function

A mathematical function that describes the cost associated with a particular level of production or activity.

Revenue Function

A Revenue Function is a mathematical representation of how a company's revenue is dependent on the selling price and quantity of goods or services sold.