Suppose the cost of milk rose 100 percent from 1990 to 2010, and average prices for the economy rose 133 percent. Relative to others, people who purchased milk experienced a:
A. Lower real income as a result of the price effect.
B. Higher real income as a result of the price effect.
C. Lower real income as a result of the wealth effect.
D. Higher real income as a result of the income effect.
B. Higher real income as a result of the price effect.
Economics
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In the figure above, what can you deduce about the slope of the curve?
What will be an ideal response?
Economics
Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the marginal product from hiring the fourth worker?
A) 70 gallons of gasoline B) 280 gallons of gasoline C) 40 gallons of gasoline D) 80 gallons of gasoline
Economics