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

The correct answer is C. the income effect.<br /><br />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.