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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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  1. 7 August, 08:56
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    The income effect states that for normal goods, as income increases demand for the good will also increase.

    It looks like the context of your question in incomplete so it is impossible to say which letter is correct without more information but you can apply the principal to easily find the answer.
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