Asked by
Manisha Patel
on Nov 04, 2024
Verified
A price change would have the smallest income effect on a
A) pack of chewing gum.
B) bicycle.
C) pair of shoes.
D) pickup truck.
Income Effect
The alteration in a person's or an economy's earnings and the effect this alteration has on the demand for a product or service.
Price Change
An alteration in the cost of goods or services, which can go up or down, depending on various factors.
- Gain insight into the ways income and substitution impacts elucidate shifts in consumer behaviors due to price adjustments in normal and inferior goods.
Verified Answer
CN
Learning Objectives
- Gain insight into the ways income and substitution impacts elucidate shifts in consumer behaviors due to price adjustments in normal and inferior goods.