Question

The income effect of a price change predicts that a _____ in a good's price will _____ consumer purchasing power, leading to a(n) _____ in consumption of _____ goods.

Answer 1

I will fill in the right answers into the blank:

The income effect of a price change predicts that a fall in a good's price will increase consumer purchasing power, leading to a(n) increase in consumption of normal goods.

Asnwers:

fall; increase; increase; normal