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bekas [8.4K]
4 years ago
14

The real-income effect:______ a. occurs when utility declines as consumption increases. b. is the additional satisfaction derive

d from consuming one more unit of a good or service. c. is the combination of goods and services that maximizes utility for a given income. d. occurs when a consumer buys more of a good as a result of a relative price change. e. occurs when there is a change in purchasing power as a result of a change in the price of a good.
Business
1 answer:
julsineya [31]4 years ago
8 0

Answer: The correct answer is "e. occurs when there is a change in purchasing power as a result of a change in the price of a good.".

Explanation: The real-income effect <u>occurs when there is a change in purchasing power as a result of a change in the price of a good.</u>

The income effect corresponds to the variation in the quantity demanded of a good (or service) as a result of the modification of the purchasing power of purchase caused by a change in the price of the good in question.

<u />

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