The Income Effect of an Increase in the Price of Backpacks

question 171

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 demanded of backpacks
• C)increase in the demand for backpacks
• D)increase in the quantity demanded of backpacks
• E)new demand curve because everything else is no longer constant

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Definitions:

Heads and Tails

Terms representing the two sides of a coin used in coin tosses to determine randomness or make decisions.

Event's Occurrence

A term referring to the instance or frequency of a specific event happening within a given timeframe or under certain conditions.

Random Phenomenon

A random phenomenon is a natural or physical event that has an unpredictable outcome, with individual occurrences varying in a non-deterministic manner.

Probability

A numeric evaluation of the chance that an event will happen, specified as a number from 0 to 1.