The Income-Effect

Multiple Choice

The income-effect:

A) isolates the effect of a change in the relative price structure on the demand of the given commodity.
B) is the sole cause of the increase in quantity demanded when the price of a good falls.
C) is identical to the substitution effect for most goods.
D) is the change in the quantity demanded of the given commodity due to a change in real income.
E) is none of the above.