If a consumer is initially in equilibrium, an increase in money income will

A) move the consumer to a new equilibrium on a lower indifference curve.
B) move the consumer to a new equilibrium on a higher indifference curve.
C) make the slope of the consumer's indifference curves steeper.
D) have no effect on the equilibrium position.

Question

Henna Mirza · Accepted Answer

Final Answer : B, Explanation :  An increase in money income allows a consumer to afford more goods and services, leading to a higher level of satisfaction. This is represented by a move to a higher indifference curve, indicating a higher level of utility.

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