Question

A fall in own price of the commodity leads to:

• A. increase in real income of the consumer
• B. decrease in real income of the consumer
• C. increase in purchasing power of the consumer
• D. Both (a) and (c)

Answer 1

The correct option is D

Both (a) and (c)

A fall in own price of the commodity leads to increase in real income of the consumer and a consquent increase in purchasing power of the consumer.