​How Does an Increase in Income Affect the Market for IPads

question 28

Multiple Choice

​How does an increase in income affect the market for iPads (normal good) ?

• A)​The demand curve for iPads shifts to the right
• B)The demand curve for iPads shifts to the left
• C)The supply curve for iPads shifts to the right
• D)​The supply curve for iPads shifts to the left

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Definitions:

Consumer Surplus

The gap between the amount consumers are prepared to spend on a product or service and the actual price they pay for it.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Marginal Cost

The financial outlay required to produce a further unit of a product or service.