The Income Effect of a Price Change Refers to the Impact

question 80

Multiple Choice

The income effect of a price change refers to the impact of a change in _____

• A) the money income of consumers on the price of a good.
• B) the relative price of a good on the demand for other goods.
• C) the price of a good on a consumer's real income.
• D) the price of a substitute good on a consumer's budget.
• E) the money income of consumers on the demand for a good.

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Definitions:

Labor-Hour Contract

A contract in which payment is made based on the number of hours worked, typically used for projects where the scope is not clearly defined.

Hourly Rate

The amount of money paid for each hour of work.

Incentive Fee Contract

A contract type that provides additional compensation to the contractor for exceeding performance targets.

Cost Reimbursable Contract

A contract where the buyer reimburses the contractor for all legitimate costs incurred plus an additional fee for profit.