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When the price of good X increases and all goods​ (including X) are normal​ goods, the income effect leads consumers to buy A. more of all goods. B. more of good X and less of other goods. C. less of all goods. D. less of good X and more of other goods.

Respuesta :

Answer:

C. less of all goods

Explanation:

The increase in price of good x causes the consumer to buy less of all goods. This is because all goods are normal goods.

Normal goods are goods whose demand increases when income increases and falls when income falls.

The increase in price of good x leads to fall in the real income of the consumer so the demand for other goods ought to fall.

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