If the Price of Prime Rib Falls,the Income Effect Due

question 189

Multiple Choice

If the price of prime rib falls,the income effect due to the price change will cause

• A)an increase in the demand for prime rib.
• B)an increase in the demand for flank steak,a substitute for prime rib.
• C)an increase in the quantity of prime rib demanded.
• D)an increase in the quantity of prime rib supplied.

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Definitions:

Income

The monetary payment received by an individual or household for labor, investment, or other sources over a specific period.

Poverty Rate

The proportion of a population living below the poverty line, indicating the percentage of people who cannot afford basic needs like food, shelter, and healthcare.

Upper Two Quintiles

The section of a population that falls into the top 40% in terms of income or wealth distribution, often used in socio-economic analyses.

Income

The money received by an individual or entity in return for their labor, from transfers, or from investments.