The Income Effect of an Increase in the Price of Backpacks,a

question 31

Multiple Choice

The income effect of an increase in the price of backpacks,a normal good,is a(n) :

• A)decrease in the demand for backpacks.
• B)decrease in the quantity of backpacks demanded.
• C)decrease in the supply of backpacks.
• D)increase in the quantity of backpacks demanded.
• E)increase in the quantity supplied of backpacks.

---

Definitions:

Congress

The national legislative body of a country, particularly in the United States, it is composed of the House of Representatives and the Senate.

Welfare

A system of support provided by the government or private organizations to ensure the basic living standards of individuals or communities.

Algorithm

A step-by-step procedure or set of rules to be followed in calculations or other problem-solving operations.

Heuristic

A mental shortcut or rule of thumb that helps simplify decision making and problem-solving.