Question
When prices rise, what happens to income?
It goes down.
It rises to meet prices.
It buys less.
It is used to buy different things.
Answers
GPT-4o mini
When prices rise, the purchasing power of income effectively decreases, which means:
**It buys less.**
This is because if prices increase while income remains the same, consumers are unable to purchase as much with their income as they could before the price rise.
**It buys less.**
This is because if prices increase while income remains the same, consumers are unable to purchase as much with their income as they could before the price rise.