मराठी

Which effect occurs when a fall in price increases consumers’ real purchasing power, enabling them to buy more?

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प्रश्न

Which effect occurs when a fall in price increases consumers’ real purchasing power, enabling them to buy more?

पर्याय

  • Income Effect

  • Substitution Effect

  • Diminishing Utility

  • Multi-purpose Use

MCQ
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उत्तर

Income Effect

Explanation:

The income effect refers to the increase in a consumer’s ability to buy more goods when prices fall, as their existing income can purchase more.

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