Asked by Morghan Graper on Jun 22, 2024
Verified
An increase in the real income of a consumer is one result from an increase in the price of a product that the consumer is buying.
Real Income
The amount of goods and services that can be purchased with nominal income during some period of time; nominal income adjusted for inflation.
Increase in Price
A rise in the cost of goods or services, often due to factors like inflation, increased demand, or production costs.
- Acquire knowledge on how alterations in prices and income influence choices made by consumers and their pursuit of maximum utility.
Verified Answer
TH
thabiso hlongwaneJun 27, 2024
Final Answer :
False
Explanation :
An increase in the price of a product typically reduces the real income of a consumer because it decreases the purchasing power of their income, making them unable to buy as much of the product or other products as before.
Learning Objectives
- Acquire knowledge on how alterations in prices and income influence choices made by consumers and their pursuit of maximum utility.