The Income Effect of an Increase in the Price of Salmon

question 244

Multiple Choice

The income effect of an increase in the price of salmon

• A)is the change in the demand for salmon when income increases.
• B)refers to the relative price effect-salmon is more expensive compared to other types of fish-which causes the consumer to buy less salmon.
• C)refers to the effect on a consumer's purchasing power which causes the consumer to buy less salmon, holding all other factors constant.
• D)is the change in the demand for other types of fish, say trout, that results from a decrease in purchasing power.

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Definitions:

Positron Emission Tomography

A type of imaging test that uses a radioactive substance to look for disease in the body, particularly useful in detecting cancer.

Maturity

A state of full development.

Contrast Medium

A material employed in medical imaging to enhance the clarity of internal body structures.

Allergy

An altered or acquired state of sensitivity; abnormal reaction of the body to substances normally harmless.