The Difference Between a Price Increase and a Decrease in Income

Multiple Choice

The difference between a price increase and a decrease in income is that

A) A decrease in income does not affect the slope of the budget line while an increase in price does change the slope.
B) A price increase does not affect the consumption of other goods while a decrease in income does.
C) A price increase will increase real income while a decrease in income will increase real income.
D) None of the statements associated with this question are correct.