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If the Price of a Good Rises,then the Effect on the Income

Question 17

Multiple Choice

If the price of a good rises,then the effect on the income of the factors that are used intensively in its production will be


A) to raise income by an absolute amount that is less than the rise in prices.
B) to raise income by an absolute amount that is more than the rise in prices.
C) to raise income by a smaller percentage than the rise in prices.
D) to raise income by a greater percentage than the rise in prices.

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