A price increase causes a consumer's "real" income to:
A) increase.
B) decrease.
C) remain unchanged.
D) decrease or increase depending on the size of the price change.

Name: A price increase causes a consumer's "real" income to: A) increase. B) decrease. C) remain unchanged. D) decrease or increase depending on the size of the price change.
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Question

Quizplus · Accepted Answer

A price increase decreases the purchasing power of the consumer's income, thus decreasing their real income.

A Price Increase Causes a Consumer's "Real" Income To