Consider the demand for avocados. Does an increase in average income cause a shi

Question

Consider the demand for avocados. Does an increase in average income cause a shift of the demand curve for avocados or a movement along the demand curve? Explain briefly An increase in average income causes O A. O B. O C. O D. a shift of the avocado demand curve because only a change in the price of avocados causes a movement along the avocado demand curve. a movement along the demand curve for avocados but a shift in the supply curve for avocados. a shift of the avocado demand curve because consumers will not spend any of the new income a shift of the avocado demand curve because all factors including the price of avocados cause quantity to change for a given price.

Explanation / Answer

An incorease in income causes a shift in the demand curve because only a change in the price of avocados causes a movement along the avacado demand curve beacse shift occurs due to external factors. Thus the correct option is (a).

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