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Answered

If prices rise but income stays the same, what is the effect on the quantity demanded?

Aquantity demanded increases.
Bfewer goods are bought.
Cmore goods are bought.
Ddemand stays the same.

Verified Answer :

Hagrid

The correct answer to this question is letter "b. fewer goods are bought." If prices rise but income stays the same,  the effect on the quantity demanded is that fewer goods are bought. Since the increase in price cannot be accommodated by the same amount of income.

amniotecardamom

Answer:

b. fewer goods are bought.

Explanation:

If prices rise but wages remain constant this means that the real income of the worker has declined, ie he or she has lost purchasing power and may be able to buy a smaller amount of goods with his or her wage. Thus, the demand for goods and services tends to be lower.

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