The Price of a Good Increases Relative to Other Goods

question 17

Multiple Choice

The price of a good increases relative to other goods.Which one of the following statements must be true? The resulting

• A)income effect is negative.
• B)income effect is positive.
• C)substitution effect is negative.
• D)substitution effect is positive.
• E)income effect is zero.

---

Definitions:

Amide

Organic compounds characterized by a carbonyl group linked to a nitrogen atom, commonly found in proteins and synthetic polymers.

Major Organic Product

The foremost substance formed with the maximum yield in any organic chemical reaction.

Phenylacetic Acid

An organic compound made up of a phenyl group attached to an acetic acid moiety.

Phenylacetonitrile

An organic compound often used as an intermediate in the synthesis of various pharmaceuticals, characterized by a benzene ring attached to a nitrile group.