For each situation below, state whether it is an example of the income effect changing quantity demanded or an example of a change in income shifting demand. a. The mean income in Detroit rises and people purchase more homes.         b. The price of frozen pizza decreases, making frozen pizza more popular among college students.        c. A recession forces many people out of work and more people purchase ramen noodles than before.        d. An increase in the price of game consoles decreases sales, as fewer people can afford them.

The income effect of a price change is described by which of the following statements?Question 4Select one:a.When the price of a good falls, consumers have an implicit increase in income and can now buy more of the good.b.When the price of a good falls, consumers will now substitute this lower priced good for more higher priced goods.c.The income effect is the relative change in the amount of a good consumed when the price of another good changes.d.The income effect shows how a change in income at a given price will affect the quantity of a good purchased.

How does an increase in income affect the demand for an inferior good? Demand increases. Demand decreases. Demand remains the same. The effect on demand cannot be determined.

Which statement best describes the income effect?It is the change in consumption due to a change in purchasing power resulting from a price changeIt is the change in consumption that results from a change in the consumer's incomeIt is the change in consumption that results from a change in the price of a substitute goodIt is the change in consumption that results from a change in the price of a complementary good

If a consumer’s income increases: Group of answer choicesThere will be a change in demand.There will be a movement along the demand curve.There will be an increase in the quantity demanded, but the demand curve will not shift.b and c.None of the above.

If a consumer’s income increases:   There will be a movement along the demand curve. You Answered  None of these   There will be no change in quantity Correct Answer  There will be a change in demand.