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24 July, 08:03

The income effect of a price change refers to the impact of a change in a) income on the price of a good b) demand when the income changes c) the quantity demanded when income changes d) the price of a good on a consumer's purchasing power

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  1. 24 July, 08:48
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    The income effect is the phenomenon observed through changes in purchasing power. It reveals the change in quantity demanded brought by a change in real income (utility).
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