The income effect of a price change predicts that a _____ in a good's price will _____ consumer purchasing power, leading to a(n) _____ in consumption of _____ goods.

Name: The income effect of a price change predicts that a _____ in a good's price will _____ consumer purchasing power, leading to a(n) _____ in consumption of _____ goods.
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Question

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A fall in a good's price increases consumer purchasing power, leading to an increase in consumption of normal goods due to the income effect.

The Income Effect of a Price Change Predicts That a _____