Assume the price of Coca-Cola increases. As a result, your real income decreases and you decrease the quantity of Coca-Cola purchased each month. This is an example of the:

A. income effect.
B. consumer price effect.
C. revenue effect.
D. substitution effect.

Answer: A

Economics

You might also like to view...

The demand for loanable funds includes demand for

i. loans. ii. stocks. iii. bonds. A) ii and iii B) i and ii C) i, ii and iii D) iii only E) i only

Economics

Which of the following government programs usually accompanies a price floor in agriculture?

a. crop limitation b. crop expansion c. ration coupon d. soil bank reduction e. soil reclamation

Economics