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Alika [10]
3 years ago
9

) A price change would have the largest income effect on a A) magazine. B) tablet computer. C) piece of clothing. D) car.

Business
1 answer:
weeeeeb [17]3 years ago
7 0

Answer:

d

Explanation:

A change in price leads to two effects :

  • The income effect
  • The substitution effect

The income effect is the change in quantity demanded as a result of a change in real income which affects the consumes purchasing power.

A car constitutes a very large part of a consumers expenditure due to its cost. Thus, the income effect for a car would be the largest

The substitution effect is the change in demand as a result of change in the price of the good compared to the price of another substitute good.

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Answer:

decisional

Explanation:

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4 0
3 years ago
What is the economic term for the practice of assigning small parts of a complicated job to individual workers who specialize in
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8 0
3 years ago
Runner's warehouse purchased digital watches for $92.99. its markup rate is 25% based on the selling price. what is the selling
Mkey [24]
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4 0
4 years ago
. Licensing occurs when: a. A licensee allows a licensor to use its intellectual property for a fee. b. A professional league pa
DedPeter [7]

Answer:

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Explanation:

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3 years ago
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