When Price Rises,the Substitution Effect

question 37

Multiple Choice

When price rises,the substitution effect

• A)always increases consumption.
• B)increases consumption for normal goods only.
• C)decreases consumption for normal goods only.
• D)decreases consumption for inferior goods only.
• E)does none of the above.

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Definitions:

Social Need

A requirement for belonging and acceptance within a group or society, influencing human behavior and motivation.

Survival

The act of continuing to live or exist, especially under challenging conditions.

Security

The protection of data, systems, and networks from theft, damage, and unauthorized access.

Belonging

The feeling of being accepted and included as an important member of a group, community, or society; a fundamental human need.