According to the Income Effect, When the Price of Automobiles

question 65

Multiple Choice

According to the income effect, when the price of automobiles rises, people buy fewer automobiles because

• A) they substitute other forms of transportation for driving.
• B) the nominal amount of their paychecks is smaller.
• C) the purchasing power of their income is reduced.
• D) their demand for automobiles is very elastic.

---

Definitions:

Edit Data

The action or capability to modify existing information in a document, database, or software application.

Track Changes

A feature in word processing software that records modifications made to a document, allowing for the review and acceptance or rejection of those changes.

Combine Command

A command used in various software and programming languages to merge or join multiple sets of data or files into a single entity.

Combine Command

An action in computing and data processing that merges two or more sets of information into a single set.