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In the process of shopping, Mr. X whose wages per month does not exceed N200, finds ...

In the process of shopping, Mr. X whose wages per month does not exceed N200, finds that the price of a commodity he used to purchase with a fixed amount of N200 has risen to N230,. He therefore decides not to buy this commodity at all. Mr. X is thus affected by the?
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  • A Substitution effect of a price change
  • B Income effect of a price change
  • C Opportunity cost of a price change
  • D Inflation effect of a price change
Correct Answer: Option D
Explanation:

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