--%>
Assignment Help - homework help

Reduction in the purchasing power of income

The income effect of a price rise for the normal good: (i) Needs a reduction in the purchasing power of your income, that helps in elucidating why demand curves are negatively sloped. (ii) Forces faster adjustments than when the good was inferior and insignificant to you. (iii) Your substitution effect is over-powered by an income effect and hence your demand curve is positively sloped. (iv) Elucidates why you encounter diminishing marginal utility at the low levels of consumption.

Can someone please help me in finding out the accurate answer from the above options.

   Related Questions in Microeconomics

  • Q : Intersections of supply and demand

    Can someone please help me in finding out the accurate answer from the following question. The prices beneath the intersections of supply and demand curves cause: (i) Shortages. (ii) Surpluses. (iii) Demands to expand. (iv) Inventories to grow. (v) Sc

    		•
  • Q : Economy in Bulgaria What is the economy

    What is the economy in Bulgaria like?

    		•
  • Q : Earn high incomes in purely competitive

    Into a purely competitive market economy, people along with rare and valuable talents would earn high incomes due to: (w) monopsonistic exploitation. (x) interest maximization. (y) economic rent. (z) transfer payments.

    Q : Define regressive in taxes as

    Line T2 depicts as in below graph a tax system which is: (i) progressive. (ii) recessive. (iii) proportional. (iv) biased. (v) regressive.

    Q : Amount of output supplied and price

    The amount of output supplied is exactly proportional to the price therefore the price elasticity of supply equivalents one into: (w) Panel A. (x) Panel B. (y) Panel C. (z) Panel D.

    Q : Why production possibilities curve

    What is the reason that production possibilities curve concave? Elucidate.

    		•
  • Q : Problem on I-Proprietorships The

    The business owned and operated by the lone individual is a/an: (i) Unit of labor. (ii) Entrepreneurship. (iii) Corporation. (iv) Sole proprietorship. Can someone please help me in finding out the accurate answer from the above opt

    		•
  • Q : Short-run supply curve and marginal

    Short-run supply curve of a purely competitive firm’s is the positively sloped part of the marginal cost curve which is above its: (w) average fixed cost curve. (x) resource demand curve. (y) average variable cost. (z) short-run

    		•
  • Q : Equilibrium in long-run purely

    When a purely competitive industry is into long-run equilibrium: (i) firms try to maximize profit. (ii) P = ATC. (c) P = MC. (iii) economic profit is zero. (iv) All of the above. Can someone explai

    		•
  • Q : Problem relating to Changes in Demand

    Airlines considerably decreased the number of flights accessible in the year 2005, as compared to flight availability during the year 2000. Passenger mileage was fall. Economists would be least possible to ascribe the decline in airline ticket sales throughout the ear

    		•