Multiple Choice
What is the income effect of an increase in the price of peaches?
A) The change in the quantity demanded of peaches that results from the price increase making peaches more expensive than other fruit, holding constant the effect of the price change on consumer purchasing power.
B) The change in the demand for peaches as a result of the change in the price of peaches, holding all other factors constant.
C) The change in the quantity demanded of other fruit that results from the impact of the price change on purchasing power, holding all other factors constant.
D) The change in the quantity demanded of peaches that results from the effect of the change in price on consumer purchasing power, holding all other factors constant.
Correct Answer:
Verified
Correct Answer:
Verified
Q76: The income effect of a decrease in
Q127: In the utility maximising model, consumer preferences
Q129: Some economists have argued that path dependency
Q133: Farah has $100 to spend each month
Q134: What is the substitution effect of an
Q137: An advantage of Microsoft Windows is its
Q230: Many airlines have not reduced or eliminated
Q233: Many airlines have not reduced or eliminated
Q268: A network externality occurs when<br>A) there is
Q274: An economist observes two consumers in a