The income effect of an increase in the price of salmon
A) is the change in the demand for salmon when income increases.
B) refers to the relative price effect-salmon is more expensive compared to other types of fish-which causes the consumer to buy less salmon.
C) refers to the effect on a consumer's purchasing power which causes the consumer to buy less salmon, holding all other factors constant.
D) is the change in the demand for other types of fish, say trout, that result from a decrease in purchasing power.
Correct Answer:
Verified
Q22: When the price of audio books, a
Q25: Consider a downward-sloping demand curve.When the price
Q26: If Ewan is consuming his utility maximizing
Q27: When the price of summer tank tops
Q36: Table 10-1 Q40: If Callum is consuming his utility maximizing Q40: The substitution effect of an increase in Q43: If Joey Kobayashi experiences diminishing marginal utility Q44: Table 10-2 Q45: Economists usually assume that people act in
![]()
![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents