With a given level of money income, when the price of a product that a consumer buys declines, the purchasing power of your money income
A) decreases.
B) increases.
C) is unchanged.
D) can increase or decreases depending on the goods being consumed.

Question

Quizplus · Accepted Answer

When the price of a product that a consumer buys declines, the purchasing power of their money income increases. This is because they can now buy more of the product for the same amount of money. This is why consumers often wait for sales or discounts before making purchases. Therefore, the correct option is B, which states that the purchasing power of money income increases.

With a Given Level of Money Income, When the Price