The net effect of a good's price increase on total real income in a region is to ____ total real income if the region is a net ________,implying that total production in the region exceeds total consumption.

Question

Quizplus · Accepted Answer

If the price of a good increases, it means that the region is likely exporting that good. As a net exporter, the increase in price will raise total real income in the region because they are selling more than they are buying. The increase in price will result in a higher revenue for the region, which will ultimately raise its total real income.

The Net Effect of a Good's Price Increase on Total