The Income Effect

question 40

Multiple Choice

The income effect

• A)of a price increase works to increase the quantity of the good demanded
• B)of a price increase works to decrease the quantity of the good demanded
• C)of a price decrease works to increase the quantity of the good demanded
• D)of a price decrease works to decrease the quantity of the good demanded
• E)of a price decrease could work to increase or decrease the quantity of the good demanded

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Definitions:

Unified

Combined into a single entity or made consistent and coherent; often refers to processes, systems, or groups that operate together seamlessly.

Dogmatic

Pertaining to or characteristic of dogma, often implying an authoritative and unyielding adherence to beliefs regardless of evidence.

Act Utilitarians

Philosophers or ethicists who follow the principle of act utilitarianism, focusing on the consequences of individual actions and choosing those that maximize happiness or reduce suffering for the greatest number.

Principle of Utility

A foundational principle in ethics that suggests actions should be judged as morally right or wrong based on their consequences, specifically aiming to maximize happiness and minimize suffering.