The change in people's purchasing power that occurs when the price of one good that they purchase changes is the

A. law of diminishing marginal utility.
B. substitution effect.
C. price income effect.
D. real-income effect.


Answer: D

Economics

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Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars SoldTrucks SoldLarry105Joe99Ralph312 Based on last month's data, ________ has an absolute advantage in selling cars and ________ has an absolute advantage in selling trucks.

A. Larry; Ralph B. Ralph; Larry C. Larry; Joe D. Joe; Joe

Economics