Managerial Economicsintermediate
An increase in income always moves a consumer to a different point on the same demand curve.
Answer
false
Explanation
### Why this is right
Income is a demand determinant other than the good's own price. A change in income shifts the demand curve rather than causing movement along the same curve.
### The concept
Movement along a demand curve is caused by a change in own price. Shifts represent changes in demand at each own price because another determinant changed.
### The other options
- **The statement is false**: It treats an income change like an own-price change, although income shifts demand.
### Watch out
“Quantity demanded” changes along a curve; “demand” changes when the whole curve shifts.
### Remember
Income changes shift demand, while own-price changes move along demand.
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