The Income Effect Influences Food Purchases Because When the Price

Multiple Choice

The income effect influences food purchases because when the price of a certain food rises,other things remaining the same,________.Consumers ________.

A) demand for that food increases;believe that the price may rise even further so they buy more now
B) demand for that food decreases;buy less of the food that has experienced the price rise and more of other foods
C) the price rises relative to income;cannot afford to buy all the things they previously bought,so they normally buy less of the food that has experienced the price rise
D) demand for that food increases;buy more food because food is a normal good
E) its relative price rises;purchase less of all foods because food is an inferior good