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6 Oct 2020
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 results from a decrease in purchasing power.
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 results from a decrease in purchasing power.
Romarie Khazandra MarijuanLv10
7 Nov 2020
