Multiple Choice
Which of the following best describes the income effect of a price increase?
A) The price of bacon increases, so Michelle buys more sausage.
B) The price of corn chips increases, so Michelle buys potato chips.
C) The tuition at the public university increases, so Michelle attends a community college.
D) Michelle's apartment rent increases, so she cancels her subscription to a monthly magazine.
Correct Answer:
Verified
Correct Answer:
Verified
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