When the price of a good increases with other things unchanged,the real income of the consumer:
A) is unchanged.
B) increases.
C) decreases.
D) None of the preceding statements is correct.

Question

Quizplus · Accepted Answer

If the price of a good increases and the consumer's income remains the same, they will have less purchasing power, meaning they will be able to buy fewer goods with their income. This results in a decrease in the real income of the consumer.

When the Price of a Good Increases with Other Things