Solved

The Income Effect Influences Food Purchases Because When the Price

Question 41

Multiple Choice

The income effect influences food purchases because when the price of a certain food rises,other things remaining the same,________.Consumers ________.


A) demand for that food increases;believe that the price may rise even further so they buy more now
B) demand for that food decreases;buy less of the food that has experienced the price rise and more of other foods
C) the price rises relative to income;cannot afford to buy all the things they previously bought,so they normally buy less of the food that has experienced the price rise
D) demand for that food increases;buy more food because food is a normal good
E) its relative price rises;purchase less of all foods because food is an inferior good

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents