When the Price of One Good Increases,the Associated Income Effect

question 39

Multiple Choice

When the price of one good increases,the associated income effect is represented by a move from one indifference curve to a:

• A) lower indifference curve since real income is now higher.
• B) lower indifference curve since real income is now lower.
• C) higher indifference curve since real income is now higher.
• D) higher indifference curve since real income is now lower.

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