If the Price of a Good Rises,then the Effect on the Income

question 17

Multiple Choice

If the price of a good rises,then the effect on the income of the factors that are used intensively in its production will be

• A)to raise income by an absolute amount that is less than the rise in prices.
• B)to raise income by an absolute amount that is more than the rise in prices.
• C)to raise income by a smaller percentage than the rise in prices.
• D)to raise income by a greater percentage than the rise in prices.