Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 15CTQ: Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the...
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Question
The "income effect" in the market for aspirin means that
a.
an increase in the
b.
a decrease in the price of a substitute good like acetaminophen will make aspirin takers feel a little poorer than they were before.
c.
aspirin are generally taken by people with higher than average incomes.
d.
an increase in the price of aspirin will cause headache sufferers to look for a lower priced remedy.
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