According to the Price and Income Multiplication Property of Demand

question 16

Multiple Choice

According to the price and income multiplication property of demand, if we multiply all the prices in an economy and the income of its agents by the same factor, then the demand for any given good will

• A) not change
• B) increase
• C) decrease

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Definitions:

Social Institution

An organized pattern of beliefs and behaviors centered on basic social needs, such as government, education, and family.

Education

The process of receiving or giving systematic instruction, especially at a school or university.

Social Exchange Theory

A psychological and sociological theory that explains social change and stability as a process of negotiated exchanges between parties.

Social Interaction

The process by which individuals act and react in relation to others in a societal context.