Select Your Favourite
Category And Start Learning.

  • ICAR and TNAU E-Course Summarized

    Summarized Notes
  • If income effect is positive for both X and Y goods, the ICC will be

    Question: If income effect is positive for both X and Y goods, the ICC will be

    Options:

    Slope upward to right
    Slope upward to left
    Slope downward to right
    Slope downward to left

    ✅ Explanation:
    -The Income Consumption Curve (ICC) shows how the consumption of two goods changes as income increases, holding prices constant.
    -A positive income effect means that as income increases, the quantity demanded for the good also increases.
    -If both goods X and Y have a positive income effect, then as income increases, the consumer will buy more of both goods. This will result in an ICC that slopes upward to the right.
      0
      Your Cart
      Your cart is emptyReturn to Shop