A price change would have the largest income effect on a
A) magazine.
B) tablet computer.
C) piece of clothing.
D) car.

Question

Quizplus · Accepted Answer

A price change would have the largest income effect on a car because it is typically the most expensive item among the options listed, and thus, its purchase consumes a larger portion of an individual's or household's budget. Changes in the price of a car would significantly affect the buyer's ability to purchase other goods and services, reflecting a substantial income effect.

A Price Change Would Have the Largest Income Effect on a