For a Consumer,which of the Following Statements About the Real-Income

question 39

Multiple Choice

For a consumer,which of the following statements about the real-income effect is true?

• A) It matters only when prices change enough to cause a measurable effect on the purchasing power of a consumer's income.
• B) It can be observed for any price change.
• C) It occurs when a consumer buys more of a good as a result of a relative price change.
• D) It matters only when prices change enough to cause a consumer to purchase more of the good whose price changed.
• E) The purchasing power of your income increases when the price of a good increases.

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Definitions:

Fungus

A kingdom of organisms that includes yeast, molds, and mushrooms; they absorb nutrients from organic matter.

Cellulitis

A common and potentially serious bacterial skin infection, characterized by redness, swelling, warmth, and pain in the affected area.

Streptococcus

A genus of spherical, Gram-positive bacteria that often cause infections in humans and animals.

Staphylococcus

A genus of gram-positive bacteria, often found on the skin and in the noses of people, which can cause a wide range of infections.