The Income Effect of a Price Change Results in a

question 150

Multiple Choice

The income effect of a price change results in a

• A)shift of the demand curve when income changes.
• B)movement along the demand curve due to a change in relative prices.
• C)shift of the demand curve due to a change in purchasing power brought about by the price change.
• D)movement along the demand curve due to a change in purchasing power brought about by the price change.

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Definitions:

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