The Difference Between a Price Increase and a Decrease in Income

question 116

Multiple Choice

The difference between a price increase and a decrease in income is that:

• A) a decrease in income does not affect the slope of the budget line, while an increase in price does change the slope.
• B) a price increase does not affect the consumption of other goods, while a decrease in income does.
• C) a price increase will increase real income, while a decrease in income will increase real income.
• D) None of the statements is correct.

---

Definitions:

Benzodiazepines

Drugs that reduce anxiety and insomnia.

Anxiety

State of apprehension, tension, and worry.

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or experiencing non-restorative sleep, leading to distress and impairment in daily functioning.

Alcohol Withdrawal

Symptoms that occur when a person who has been drinking heavily for a long time suddenly stops or significantly reduces alcohol intake.