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Natalie has been a price-conscious shopper most of her life. She buys private label brands and even generics when they are available to save money.
Natalie has been a price-conscious shopper most of her life. She buys private label brands and even generics when they are available to save money. But last year she finished school and got her first "real job," which came with a large pay increase. The higher income altered her shopping patterns. For example, she buys her favorite flavor of Ben & Jerry's ice cream each week despite its high price. In the past, Ben & Jerry's was strictly a special occasion purchase. This is commonly called the "income effect." As income increases, people's price elasticity _____ some amount (on average)
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