The ________ effect refers to the change in quantity demanded of a good that results from the effect of a change in the good's price on consumers' purchasing power.
A) ceteris paribus
B) population
C) substitution
D) income

Question

Quizplus · Accepted Answer

The description refers to the income effect, which is the change in quantity demanded of a good that results from a change in consumers' income. When the price of a good decreases, consumers have increased purchasing power, leading to a greater quantity demanded of the good.

The ________ Effect Refers to the Change in Quantity Demanded