Read each question and choose the best answer if The responds to a sharp increase in his transportation costs by buying fewer clothes, be in demonstrating B. an individual demand schedule C. the income effect

Question

Read each question and choose the best answer if The responds to a sharp increase in his transportation costs by buying fewer clothes, be in demonstrating B. an individual demand schedule C. the income effect

Answer 1

The correct answer is C. the income effect.The income effect refers to the change in the quantity demanded of a good or service resulting from a change in the consumer's income. In this scenario, the individual responds to a sharp increase in transportation costs by buying fewer clothes. This indicates that the individual's purchasing power has decreased due to the higher transportation costs, leading to a reduction in the quantity of clothes demanded. Therefore, the individual is demonstrating the income effect.

Problemas

Read each question and choose the best answer if The responds to a sharp increase in his transportation costs by buying fewer clothes, be in demonstrating B. an individual demand schedule C. the income effect

Roztwór

Respuesta