Question

The things remaining same, when a consumer's income increases his equilibrium point moves to ______________.

• A. a higher indifference curve
• B. a lower indifference curve
• C. remains unchanged on the same indifference curve
• D. moves to the left-hand-side on the same indifference curve

Answer 1

The correct option is A a higher indifference curve

If income increases, price line shift upwards and equilibrium point moves to a higher $IC$.