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 statements associated with this question are correct.

Question

Quizplus · Accepted Answer

When the price of a good increases, the consumer's purchasing power decreases, which means that the consumer can buy fewer goods with the same amount of income. Therefore, the real income of the consumer decreases.

When the Price of a Good Increases with Other Things