Kate has a so-called fruit budget, which she uses to buy only apricots and nectarines. Assume the price of apricots increases. Which of the following is an example of the income effect? The increase in the price of apricots makes apricots relatively more expensive than nectarines, so Kate will buy fewer apricots and more nectarines. The increase in the price of apricots decreases Kate's real income, which forces Kate to buy fewer fruits in general. Because the price of apricots increases, Kate will choose to buy only nectarines and no apricots