The Income Effect of a Price Change Is Described by Which

Multiple Choice

The income effect of a price change is described by which of the following statements?

A) When the price of a good falls, consumers have an implicit increase in income and can now buy more of the good.
B) When the price of a good falls, consumers will now substitute this lower priced good for more higher priced goods.
C) The income effect is the relative change in the amount of a good consumed when the price of another good changes.
D) The income effect shows how a change in income at a given price will affect the quantity of a good purchased.