Asked by
Nikhil Parmar
on Oct 14, 2024Verified
A consumer prefers more to less of every good.Her income rises, and the price of one of the goods falls while other prices stay constant.These changes must have made her better off.
Income Rises
An increase in the amount of money received from work, business, investments, or other sources.
More To Less
A principle or process that involves moving from a greater quantity or quality to a lesser one.
Price Falls
A decrease in the market price of goods or services, often due to increased supply or reduced demand.
- Analyze the effect of income changes on consumer choices and budget constraints.
Verified Answer
LB
Learning Objectives
- Analyze the effect of income changes on consumer choices and budget constraints.