The Substitution Effect of a Change in the Price of Bananas

question 195

Multiple Choice

The substitution effect of a change in the price of bananas refers to the way in which a change in the

• A)price of a substitute affects the demand for bananas
• B)price of bananas affects the ability to buy them
• C)relative price of bananas changes demand for them
• D)relative price of bananas changes the quantity demanded of bananas
• E)price of a substitute affects the quantity demanded of bananas

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Definitions:

General Concern

A broad interest or worry that affects or involves many people.

Status Quo

The existing state of affairs, particularly in terms of social or political issues.

Refreezing

Refreezing refers to the final stage of Lewin's change model where new behaviors or changes are solidified into everyday practices.

Lewin's Change Model

A framework for understanding organizational change involving three steps: unfreezing, change, and refreezing.