The Income Effect states that if a change in prices causes consumers to have lower real incomes, then consumers would

demand a greater quantity of goods than normal.

demand a lesser quantity of goods than normal.

demand the same quantity of goods as normal.

stop demanding a good.

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11 August, 06:22

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Jerome Molina · Answer 1

demand a lesser quantity of goods than normal.

The Income Effect states that if a change in prices causes consumers to have lower real incomes, then consumers woulddemand a greater quantity of goods than normal.demand a lesser quantity of goods than normal.demand the same quantity of goods as normal.stop demanding a good.