When Consumers' Incomes Increase, the Price of a Normal Product

question 192

True/False

When consumers' incomes increase, the price of a normal product or service rises.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.

Supplier

A party that provides goods or services to another entity, typically part of a supply chain.

Revenue

The entire financial income obtained from transactions involving the sale of products or the provision of services central to an organization's main operations.

Income Elasticity

A measure of how the demand for a good or service changes with a change in consumers' income.