A change in the price of a good purchased by a consumer would affect that consumer's
A) nominal income.
B) real income.
C) demand curve.
D) marginal utility.

Question

Quizplus · Accepted Answer

A change in the price of a good would affect a consumer's real income, which is their purchasing power after accounting for inflation or price changes. This, in turn, can impact their ability and willingness to purchase the good, and can lead to a movement along the demand curve. Marginal utility refers to the additional satisfaction gained from consuming one more unit of a good, and is not directly affected by a change in price. Nominal income refers to a consumer's income in terms of current dollars, but does not give insight into their purchasing power after accounting for price changes.

A Change in the Price of a Good Purchased by a Consumer