For Most Goods, the Real-Income Effect of a Price Change

Multiple Choice

For most goods, the real-income effect of a price change is

A) small because the good accounts for a small part of the consumer's budget.
B) small because the decision to buy a good depends only on the income of a consumer.
C) large because the price of the good is in terms of the currency and the income of the person is also in terms of the currency.
D) zero because the real-income effect only applies to durable goods.