The Substitution Effect

question 124

Multiple Choice

The substitution effect

• A) is always larger than the price effect.
• B) always decreases purchases of a good as the price of a good rises.
• C) increases purchases of the good as the price rises if the good is a normal good.
• D) is always smaller than the income effect.

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Definitions:

UV Light

Ultraviolet light, a form of electromagnetic radiation with a wavelength shorter than that of visible light but longer than X-rays.

Ethane

A hydrocarbon with the formula C2H6, consisting of two carbon atoms single-bonded together, with three hydrogen atoms bonded to each carbon.

Chain Termination

A process in polymerization or DNA synthesis where growth of the polymer chain is stopped by a terminating molecule.

Ethane

A simple aliphatic hydrocarbon with the formula C2H6, consisting of two carbon atoms single-bonded together and six hydrogen atoms.