When the price of a good falls, the income effect for a normal good implies that people buy
A) more of that good because they can afford to buy more of all the things they previously bought.
B) less of that good because they cannot afford to buy all the things they previously bought.
C) more of that good because the relative price of the good has risen.
D) less of that good because the relative price of the good has fallen.
Correct Answer:
Verified
Q126: A complement is a good
A) of lower
Q127: Q128: Which of the following shifts the demand Q129: Which of the following shifts the demand Q130: When the price is below the equilibrium Q132: Q133: If the quantity of textbooks supplied is Q134: Which of the following is the BEST Q136: Q373: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
![]()
![]()
![]()