The Income Effect Influences Food Purchases Because When the Price

The income effect influences food purchases because when the price of a certain food rises, other things remaining the same, _______ Consumers _______

A) demand for that food increases; believe that the price may rise even further so they buy more now
B) its relative price rises; purchase less of all foods because food is an inferior good
C) demand for that food decreases; buy less of the food that has experienced the price rise and more of other foods
D) the price rises relative to income; cannot afford to buy all the things they previously bought, so they normally buy less of the food that has experienced the price rise
E) demand for that food increases; buy more food because food is a normal good

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