For Most Goods, the Real-Income Effect of a Price Change

question 272

Multiple Choice

For most goods, the real-income effect of a price change is

• A) small because the good accounts for a small part of the consumer's budget.
• B) small because the decision to buy a good depends only on the income of a consumer.
• C) large because the price of the good is in terms of the currency and the income of the person is also in terms of the currency.
• D) zero because the real-income effect only applies to durable goods.

---

Definitions:

Adolescents

Individuals in the transition period from childhood to adulthood, typically ranging from puberty to legal adulthood.

Children

Young human beings who are not yet adults, typically considered to be from birth through early adolescence.

Job Competence

The ability and skill set that enables an individual to perform the duties required by their job effectively.

Romantic Appeal

The quality or act of being romantic or displaying affection, passion, or desire for another person.