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

Name: The income effect of an increase in the price of backpacks,a normal good,is a(n):
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in the price of backpacks will decrease the real income of the consumer, as they have to spend more on the same amount of backpacks. As backpacks are a normal good, the income effect will lead to a decrease in the quantity of backpacks demanded. Therefore, option B is the correct answer.

The Income Effect of an Increase in the Price of Backpacks,a