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2 answers:

7 0

income,rising prices makes us feel poorer when prices increase, your budget wont buy as much as it used to, it feels as if you have less money. other goods. as income increases demand falls for these goods. your demand for a good that you will keep buying despite a price increase.

erma4kov [3.2K]4 years ago

3 0

I believe it’s the income effect although not too sure because maybe differences in income will change prices ( either by making them rise or decrease ) and like said in the question make one feel poorer.

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