The Substitution Effect of a Price Change for Product X

question 16

Multiple Choice

The substitution effect of a price change for product X is the change in consumption of X associated with a change in

• A) the price of X, with the level of utility held constant.
• B) the price of X, with the level of real income not considered.
• C) the price of X, with the prices of other goods changing by the same percentage as that for product X.
• D) income, with prices of other goods held constant.

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