Which of the Following Is True Concerning the Substitution Effect

question 33

Multiple Choice

Which of the following is true concerning the substitution effect of a decrease in price?

• A) It will lead to an increase in consumption only for a normal good.
• B) It always will lead to an increase in consumption.
• C) It will lead to an increase in consumption only for an inferior good.
• D) It will lead to an increase in consumption only for a Giffen good.

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Definitions:

Young People

Individuals in their early life stages, generally considered to be in the age range from adolescence to early adulthood.

Careers

The progression of occupational roles or jobs that a person undertakes over their working lifetime, often related to their skills and interests.

First Marriage

The initial matrimonial union of an individual, before any potential subsequent marriages.

Young People

Individuals in their late childhood to early adulthood, often considered to encompass teenagers and those in their early 20s.