If dividend income increases,the following does not happen
A) the consumer chooses to consume more leisure.
B) the consumer chooses to consume more consumption goods.
C) the budget constraint shifts to the right.
D) the substitution effect exceeds the income effect.

Question

Quizplus · Accepted Answer

When dividend income increases, the income effect typically leads to more consumption of both leisure and goods, but it does not inherently cause the substitution effect to exceed the income effect.

If Dividend Income Increases,the Following Does Not Happen