A household,that is net buyer of a good,experiences an increase in the price and responds by consuming less of this and other goods shows:

Name: A household,that is net buyer of a good,experiences an increase in the price and responds by consuming less of this and other goods shows:
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

Quizplus · Accepted Answer

The income effect describes a situation where a price increase for a good leads to a decrease in the consumer's real income, causing the consumer to buy less of that good and potentially less of other goods as well.

A Household,that Is Net Buyer of a Good,experiences an Increase