22.5k views
5 votes
What is the income effect of a price increase?

User Matin Kh
by
8.1k points

1 Answer

1 vote

Answer: The income effect of a price increase is the change in consumption that results from the decrease in the purchasing power of consumers’ income.

Step-by-step explanation:

User Lasse Christiansen
by
8.5k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.