Suppose the Price of a Good Rises

question 86

Multiple Choice

Suppose the price of a good rises. The income effect

• A) is shown by increasing income at the new relative price in order to move from the old indifference curve to the new indifference curve after the price change.
• B) shows the change in consumption that results from the change in relative price while keeping income constant.
• C) is shown by decreasing income at the new relative price in order to move from the old indifference curve to the new indifference curve after the price change.
• D) shows the change in consumption that results from the change in relative price while staying on the same indifference curve.

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Definitions:

Genetic Abnormality

An unusual condition in an organism resulting from changes in its DNA sequence or chromosome structure.

Trait

A specific characteristic or attribute of an organism that can be inherited or determined by genes.

Six Fingers

A condition known as polydactyly, where an individual has an extra digit on the hand or foot.

X-Linked Recessive Disorder

A genetic disorder carried on the X chromosome, where males are typically more affected due to having only one X chromosome.