The Income Effect of an Increase in the Price of Backpacks,a

question 31

Multiple Choice

The income effect of an increase in the price of backpacks,a normal good,is a(n) :

• A)decrease in the demand for backpacks.
• B)decrease in the quantity of backpacks demanded.
• C)decrease in the supply of backpacks.
• D)increase in the quantity of backpacks demanded.
• E)increase in the quantity supplied of backpacks.

---

Definitions:

Labor Market

The labor market refers to the supply and demand dynamics of labor, where employers seek to hire workers, and individuals look for employment.

Wages of Teenagers

The amount of money paid to teenage workers for their labor, often influenced by legal minimum wages, market demand, and the job's skill requirements.

Fast Food Hamburgers

Describes quick service restaurants specializing in hamburgers.

Supply

Supply refers to the total amount of a product or service available to consumers in the market at any given time.