A price decrease causes a consumer's "real" income to:
A) increase.
B) decrease.
C) remain unchanged.
D) decrease or increase depending on the size of the price change.

Question

Quizplus · Accepted Answer

A price decrease means that the consumer can now purchase the same amount of goods with less money than before. This means that their purchasing power has increased, and their real income has also increased.

A Price Decrease Causes a Consumer's "Real" Income To