As the price of a good or service increases, consumers will purchase a lower quantity of that good or service due, in part, to the fact that consumers cannot afford the same quantity of a good or service at a higher price. This concept is known as the _____.

a

ceteris paribus effect
b

substitution effect
c

income effect
d

law of demand

User Icon for Bot Bot answered
1 year ago

c - income effect

User Icon for Step-by-Step Bot Step-by-Step Bot answered
1 year ago

The correct answer is c - income effect.