[Answer] An increase in income results in an outward shift of an indifference curve. T or F?

Answer: F

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An increase in income results in an outward shift of an indifference curve. T or F? 16) An increase in income results in an outward shift of an indifference curve . FALSE 1) In a market economy the high salaries of some star baseball … t or f- if prices or products remain same an increase in income shifts the budge constraint outward true t or f- when consumer moves down their indifference curve gain in utility from consuming more of one good will exceed the loss from consuming less of the other. The ICC in Figure.1 is rising upwards to the right. It shows that the consumer successively moves on a higher indifference curve and becomes better off with increase in her/his income and she/he also increases consumption of of goods X and Y. Here income effect is positive for goods X and Y. A consumer's utility-maximizing combination of goods is given by the bundle that corresponds to the point on. A) the indifference curve that intersects the horizontal axis. B) the indifference curve that intersects the vertical axis. C) an indifference curve that is tangent to the budget constraint . From above it follows that as a result of the increase in his purchasing power (or real income ) due to the fall in price the consumer will move to a higher indifference curve and will become better off than before. It is as if the price had remained the same but his money income was increased . Assume th...

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