The price index for the base year is always 100

Income effect results in _____

a. a change in the elasticity of demand of a consumer b. a change in the buying power of consumers c. a change in the opportunity cost d. a change in the permanent income of a consumer

If public subsidies for education were eliminated, what would you expect as an outcome in the market for educational services?

A) More students would enroll in school. B) The price students pay to attend school would equal the value of an additional unit of education consumed. C) There would be no correlation between the price students pay and the cost of providing the educational services. D) The quality of education would deteriorate.