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.

---

Definitions:

Herzberg's Theories

A motivational theory, which distinguishes between hygiene factors that can prevent dissatisfaction, and motivators that can lead to satisfaction in the workplace.

Employee Engagement

The level of enthusiasm and dedication a worker feels towards their job, characterized by emotional attachment and willingness to go above and beyond.

Financial Performance

A measurement of how well an entity is using its assets to generate earnings, often evaluated through indicators like revenue, profit, and return on investment.

Volatile Economic Times

Periods characterized by rapid and unpredictable changes in economic conditions, affecting stability and decision-making.