An Increase in Consumer Income Can Either Increase or Decrease

question 18

True/False

An increase in consumer income can either increase or decrease demand for a good

---

Definitions:

Marginal Satisfaction

The change in satisfaction or utility that a consumer experiences from consuming an additional unit of a good or service.

Utility-Maximizing

The economic principle that consumers choose combinations of goods and services to maximize their satisfaction or utility under budget constraints.

Economic Theory

A set of principles and models that explain how economic agents interact and how economies function.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.