When you consider both of the effects on the slope of the pricing unction (-t/H) from a household having higher income, what can we ay about how income will affect the slope? It will make the slope steeper It will make the slope flatter O It will not affect the slope We don't know how it will affect the slope without more information

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 15CTQ: Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the...
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When you consider both of the effects on the slope of the pricing
function (-t/H) from a household having higher income, what can we
say about how income will affect the slope?
O It will make the slope steeper
It will make the slope flatter
O It will not affect the slope
O We don't know how it will affect the slope without more information
Transcribed Image Text:When you consider both of the effects on the slope of the pricing function (-t/H) from a household having higher income, what can we say about how income will affect the slope? O It will make the slope steeper It will make the slope flatter O It will not affect the slope O We don't know how it will affect the slope without more information
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