-In the table above, in terms of units of pizza, real income is
A) lower in case A than in cases B and C.
B) lower in case B than in cases A and C.
C) lower in case C than in cases A and B.
D) equal in all three cases.

Question

-In the table above, in terms of units of pizza, real income is
A) lower in case A than in cases B and C. 
B) lower in case B than in cases A and C. 
C) lower in case C than in cases A and B. 
D) equal in all three cases.

Quizplus · Accepted Answer

Real income in terms of units of pizza is equal in all three cases because real income is determined by the purchasing power of income, which remains constant across different scenarios if the price of pizza and income are proportionally adjusted.

-In the Table Above, in Terms of Units of Pizza