The price of mangoes rises and, at the same time, buyers' incomes rise. If the quantity of mangoes bought stays the same, the most likely explanation is

the increase in demand from income offset the contraction from the price riseCorrect answerYour answerthe law of demand does not apply to mangoesCorrect answerYour answermangoes are an inferior goodCorrect answerYour answerdemand does not depend on incomeCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

The price rise moves buyers up the curve (less); the income rise shifts the curve right (more).
If the two pulls are equal, the quantity bought can stay where it was.

Concept: Combined movement and shift
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsMovement along and shift of the curve

Practise this chapter →

Ten questions from Demand & Its Determinants, at your own pace.

The price of mangoes rises and, at the same time, buyers' incomes rise. If the quantity of mangoes bought stays the same, the most likely explanation is

Explanation