For a renter,the income effect of an increase in apartment rents will:
A) have a greater impact than the income effect of an increase in the price of a chewing gum.
B) be almost negligible,because everything except price is assumed constant along a demand curve.
C) have less of an effect than the income effect of a decrease in the price of dairy products.
D) be almost negligible,because housing is a necessity.
E) have a greater impact than the positive substitution effect of this price change.
Correct Answer:
Verified
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