Suppose the Price of Apples Rises Making Oranges Relatively Less

question 126

True/False

Suppose the price of apples rises making oranges relatively less expensive. The increase in orange consumption as a result of the price change is an example of the income effect.

---

Definitions:

Credit Card Sales

Transactions where customers use credit cards to pay for goods or services, resulting in receivables for the seller.

Periodically Recorded

Financial transactions or events that are recorded at regular intervals, such as monthly, quarterly, or annually.

Bank Credit Cards

Financial instruments issued by banks that allow cardholders to borrow funds with which to pay for goods and services, subject to the agreement that the funds will be repaid.

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a later date.