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The income effect of a price change arises because a. as price falls or rises there is an effect similar to an income increase or

The income effect of a price change arises because

a. as price falls or rises there is an effect similar to an income increase or decrease

b. the effect of taxes on government revenues

c. higher or lower prices affect suppliers incomes

d. as the price of a good rises or falls buyers feel their incomes have fallen due to inability to

recall the previous price and a suspicion regarding all price changes

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