If the price of a good increases, all else equal, consumers perceive an increase
ID: 1091017 • Letter: I
Question
If the price of a good increases, all else equal, consumers perceive
an increase in purchasing power if the good is an inferior good.
an increase in income if the price increase occurs for a normal good.
a decrease in purchasing power.
a net gain in purchasing power if they decrease consumption of some goods.
an increase in purchasing power if the good is an inferior good.
an increase in income if the price increase occurs for a normal good.
a decrease in purchasing power.
a net gain in purchasing power if they decrease consumption of some goods.
Explanation / Answer
a decrease in purchasing power.