the income effect causes consumers to do which of the following? A. Demand a lesser quantity of goods as normal. B. Demand a greater quantity of goods as normal. C. Demand the same quantity of goods as normal.

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Business

Xzavier Hess

7 August, 05:57

the income effect causes consumers to do which of the following? A. Demand a lesser quantity of goods as normal. B. Demand a greater quantity of goods as normal. C. Demand the same quantity of goods as normal.

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Noemi Hutchinson · Answer 1

The income effect states that for normal goods, as income increases demand for the good will also increase.

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