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Macroeconomics Question, Law of Demand?

When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes:

A)the cost effect.

B)the inflationary effect.

C)the income effect.

D)the substitution effect.

2 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    The cost effect

  • 1 decade ago

    B?

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