The Income Effect Means That When the Price of a Good

question 14

Multiple Choice

The income effect means that when the price of a good rises:

• A) the buying power of your income has been reduced
• B) consumers have an incentive to consume less of the good with a relatively higher price and more of the good with a relatively lower price
• C) your preferences also change
• D) you buy more normal goods and fewer inferior goods

---

Definitions:

Fractured Right Femur

A break in the right femur bone, which is located in the thigh and is critical for supporting the body's weight and allowing leg movement.

Interview Process

A structured interaction between a candidate and an employer designed to evaluate the applicant's suitability for a position.

Orientation Phase

The initial stage in a relationship or process, such as the nurse-patient relationship, where parties get to know each other and understand roles and expectations.

Working Phase

In therapeutic relationships, the stage where the nurse and patient work together to solve problems and accomplish goals.