The definition of income effect is best defined as: . Select the correct answer below: The state in which the ratio of the prices of goods is equal to the ratio of the marginal utilities. The idea that consumers replace costly goods with more affordable goods as prices change. The idea that a higher price means the buying power of income has been reduced. A decision to consume a specific combination of goods to optimize satisfaction.

Caleb construction (cc) incurs supervisor salaries expense in the construction of homes. if cc manufactures 100 homes in a year, fixed supervisor salaries will be $400,000. with the current construction supervisors, cc's productive capacity is 150 homes in a year. however, if cc is contracts to build more than 150 homes per year, it will need to hire additional supervisors, which are hired as full-time rather than temporary employees. cc's productive capacity would then become 200 homes per year, and salaries expense would increase to $470,000. how would cc’s salaries expense be properly classified? fixed variable mixed stepped curvilinear