Typically,consumers Respond to an Increase in (Expected)future Income by ________

question 11

Multiple Choice

Typically,consumers respond to an increase in (expected) future income by ________.

• A)shifting the budget constraint to the left
• B)increasing both current and future consumption
• C)saving more to increase future wealth
• D)waiting until the income is received before changing their consumption behavior

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Definitions:

Direct Discrimination

Unfair treatment of individuals based on their specific characteristics, such as race, gender, or age, as directly expressed by actions or policies.

Indirect Discrimination

practices or policies that appear neutral but result in unfair treatment of certain groups without direct intention to discriminate.

Robinson-Patman Act

Part of a group of laws collectively called the antitrust laws governing competition in the United States. Under the Robinson–Patman Act, it’s illegal to give or receive a price discount on a good sold to another business. This law does not cover services and sales to final consumers.

Price Discrimination

The strategy of selling the same product to different customers at different prices, often based on their willingness or ability to pay.