Figure 3.2.2
-Which of the following will result in a decrease in a consumer's purchasing power?
A) A decrease in the consumer's income
B) An increase in the price of the good on the vertical axis
C) An increase in the price of the good on the horizontal axis
D) all of the above

Question

Figure 3.2.2
-Which of the following will result in a decrease in a consumer's purchasing power?
A) A decrease in the consumer's income 
B) An increase in the price of the good on the vertical axis 
C) An increase in the price of the good on the horizontal axis 
D) all of the above

Quizplus · Accepted Answer

All of the options listed will result in a decrease in a consumer's purchasing power. A decrease in income means the consumer has less money to spend. An increase in the price of goods, whether on the vertical or horizontal axis in a demand-supply graph, means that the consumer can buy less of those goods with the same amount of money.

Figure 3.2.2 -Which of the Following Will Result in a Decrease in Decrease