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:

Federal Exemptions

Protections and privileges granted under federal law, often in bankruptcy, that allow individuals to retain certain assets from creditors.

Residence

A place where an individual lives or has their home.

Home Equity

The portion of a homeowner's property value that exceeds the outstanding balance of all liens on the property.

Preferential Payment

A payment made by a debtor to a creditor before a bankruptcy filing that gives the creditor more than it would receive in the debtor's bankruptcy.