Rodi owns Hallman's auto repair service. He has observed over the years that customers keep their high-mileage cars longer when the economy is doing poorly, creating demand for his maintenance and repair service. Rodi has observed the impact of _______ on demand for his service.
A. break-even points
B. the price inelasticity ratio
C. the income effect
D. the target return effect
E. cross-price elasticity
Answer: C. the income effect