Answer to Question #182666 in Microeconomics for Odunowo Aminat

Question

A increase in people income with a simultaneous equal increase in prices is expected to:

Select one:

a. decrease the demand of items  

b. cause not change in the demand of items

c. decrease the demand of substitute items 

d. all answer choices are possible 

e. increase the demand of items 

Answer 1

b. cause not change in the demand of items

Since the consumers will be able to meet the higher costs of increased prices of goods with the higher income earned.