Multiple Choice
Consider the income and substitution effects of price changes.For a product with an income elasticity greater than one,a price increase will cause the consumer's real income to
A) rise and the quantity purchased to rise.
B) fall and the quantity purchased to rise.
C) remain constant.
D) fall and the quantity purchased to fall.
E) rise and the quantity purchased to fall.
Correct Answer:
Verified
Correct Answer:
Verified
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