The income effect of an increase in the price of backpacks (a normal good)is a(n)

Question

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When the price of a normal good like backpacks increases, it reduces the purchasing power of consumers' income. This means that they can afford to buy fewer backpacks at the higher price, leading to a decrease in the quantity demanded of backpacks. However, the overall demand for backpacks is not likely to be affected significantly, as it is still considered a necessary or desirable item for most consumers. Thus, the income effect of an increase in the price of backpacks is a decrease in the quantity demanded of backpacks.

The Income Effect of an Increase in the Price of Backpacks