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:

Chain Communication

A structured form of communication that follows a hierarchical pattern, typically flowing from top to bottom within an organization.

Team Members

Individuals who are part of a group collaborating towards a common goal, each contributing with their skills and efforts.

Intensively Work

The act of working with extreme focus and effort over a short period to achieve high levels of productivity.

Monopoly Price

The price set by a monopolist, who has exclusive control over the supply of a good or service and can manipulate prices to maximize profits.